FX.co ★ Eurozone Sentix Investor Confidence Rises To -13.8

In October, investor sentiment within the Euro area experienced its first rise in four months, suggesting renewed optimism about an economic recovery. This development comes as expectations increase following the European Central Bank's (ECB) interest rate cuts alongside economic stimulus measures from China.

According to data released on Monday by the behavioral research institute Sentix, the investor confidence index improved to -13.8 in October, up from -15.4 in September, surpassing the anticipated figure of -14.6.

Although the current assessment index reached a new yearly low, expectations have begun to climb, Sentix reported. Specifically, the current situation index fell for the fourth consecutive month to -23.3 in October, marking its lowest level since December 2023, compared to -22.5 in September. Meanwhile, the expectations index increased to -3.8, up from -8.0 the previous month.

Sentix noted that investors are buoyed not only by the ECB's interest rate reductions but also by recent stimulus initiatives in China.

While Germany's economy continues to exhibit signs of recession, expectations have improved, showing an increase of 6.8 points. This optimism is driven largely by the latest growth momentum in China, which is positively impacting outlooks within Germany. The investor sentiment index in Germany rose to -31.5 in October, up from -34.7 the month before.

Despite these positive trends, the influence from China's stimulus remains limited. Additionally, new European Union policies, such as tariffs on electric vehicles imported from China, are posing further challenges to growth prospects.