Market Analysis

Investor confidence in the eurozone continued its upward trend in June, marking the eighth consecutive month of improvement despite ongoing economic challenges, according to a recent survey by Sentix released on Monday (Jun 10).

The Sentix index for the eurozone rose to 0.3 points in June from -3.6 in May, surpassing analysts' expectations of a rise to -1.8. Notably, the index for expectations climbed from 7.8 in May to 10 in June, suggesting potential ongoing positive momentum in the weeks ahead, the survey noted.

Sentix highlighted the need for Germany's economy, crucial for the region, to show stronger signs of recovery to bolster overall momentum. However, such a signal has yet to materialize, reflecting the cautious pace of improvement since the economic impact of Russia's invasion of Ukraine last February.

The survey of 1,276 investors conducted between Jun 6 to Jun 8 also indicated that despite some stabilization, Germany's current economic situation index improved only modestly from -33.5 in May to -26.3 in June.

Sentix underscored that these sluggish improvements may bolster arguments for further interest rate cuts by the European Central Bank (ECB), particularly as their inflation barometer continues to reflect an unfavorable inflationary environment.

Paraphrasing text from "Reuters" all rights reserved by the original author.