Euro zone investor morale better than expected at start of 2026

Investor Sentiment in the Euro Zone

BERLIN, Jan 12 (Reuters) - The Sentix index measuring investor morale in the euro zone rose more than expected at the start of the year, hitting its highest level since July 2025 due to improved expectations, though it still remained in negative territory, a survey showed on Monday.

Overview of the Sentix Index

The index rose to -1.8 points in January from -6.2 the month before, beating forecasts by analysts polled by Reuters for a slightly less optimistic reading of -4.9.

Economic Expectations and Current Situation

"While the eurozone, and Germany in particular, continue to struggle with structural challenges but are showing signs of bottoming out, the U.S. and Asia in particular are providing new impetus for growth," said Sentix in a press release.

Implications for Germany's Economy

The survey of 1,091 investors taken from January 8-10 showed that economic expectations in particular were on the upswing, more than doubling from December to hit 10.0 in January.

The index measuring the current situation also improved somewhat, growing to -13.0 from -16.5 in the last month of 2025.

Similar to the wider currency bloc, sentiment in Germany, Europe's largest economy, improved significantly, reaching -16.4, its highest level since August 2025, from -22.7, while expectations turned positive, at 5.5, from -1.3 in December.

"Normally, this is a classic 'turnaround signal.' However, despite the increase, the current situation indicators remain strongly recessionary at -36.0 points," according to Sentix.

(Reporting by Miranda Murray, Editing by Friederike Heine)