Figures from the Sentix showed that the eurozone investor sentiment rose again in April, recording its sixth consecutive monthly increase and reaching its highest level since February 2022.
The investor confidence index rose to -5.9 points from -10.5 points in March, while consensus estimates suggested an increase to -8.3 points. The poll of 1,201 investors was conducted between April 4-6.
The economic expectations index rose by 7.3 points to 5.30 points. It was the seventh monthly increase in a row and the highest value since February 2022. Meanwhile, the current situation index increased to -16.3 points (the highest value since June 2023) from -18.5 points in March.
Sentix said that the latest improvement should at least bring the recessional period in the eurozone to an end. Although the economic momentum is moving in the right direction, it lacks momentum. This is probably still due in no small part to the relative weakness of the German economy. As much as the economic improvement is nevertheless cause for celebration, this weak upswing is already clearly dampening hopes for inflation and thus interest rate cuts. In any case, the support for the interest rate markets is becoming noticeably weaker. Meanwhile, the investor confidence index in Germany rose to - 20.5 points (the highest value since May 2023) from -27.9 points in March. The economic expectations index improved to -3.5 points (the highest value since February 2022) from -14.3 points in March, while the current situation index rose 4.5 points to -36.0 points.