Market Analysis

Investor sentiment in the euro zone declined for the second month in a row in August, hitting its lowest point since January, according to a survey released on Monday.

The Sentix index for the euro zone dropped to -13.9 points in August from -7.3 in July, falling short of analysts' expectations of -8.0, as forecasted by Reuters.

The expectations index also experienced a significant decline, plummeting to -8.8 points from 1.5 in July. Sentix noted that this sharp drop is likely to concern forecasters, suggesting that the already weak economic conditions are expected to worsen over the next six months.

The survey indicated that investors are worried about various factors, including the fragile geopolitical situation, particularly in the Middle East, the upcoming German state elections, and the uncertainty surrounding the U.S. presidential election later this year.

In Germany, Europe's largest economy, investor confidence fell dramatically to -31.1 in August from -19.0 in July. The index measuring the current economic situation in Germany also dropped sharply to -42.8 from -32.3.

The survey, which included 1,150 investors, was conducted between August 1 and August 3, according to Sentix.

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