Eurozone’s investor sentiment tumbled sharply in the fifth month of 2022; the latest data published by the Sentix research group showed on Monday.
The gauge slumped to -22.6 in May from -18 in April vs. -20.8 expected. The index fell to its lowest level since June 2020, as signs of recession become clearer. The gauge tumbled for the third month in a row.
A current conditions index fell to -10.5 in May from -5.5 seen in April.
An expectations index crashed to -34.0 from -29.8, its lowest level since December 2008.
Key takeaways
"The global economy is facing a 'perfect storm.”
"The traces of the Ukraine conflict are also becoming increasingly visible in the economy.”
"The recession is becoming visible."
EUR/USD reaction
The shared currency shows little reaction to the disappointing Eurozone Sentix data. EUR/USD is losing 0.38% on the day, currently trading at 1.0511.
About Eurozone Sentix Investor Confidence
Among 1600 financial analysts and institutional investors, the Sentix Investor Confidence is a monthly survey that shows the market opinion about the current economic situation and the expectations for the next semester. The index, released by Sentix GmbH, is composed by 36 different indicators. Usually, a higher reading is seen as positive for the Eurozone, which means positive, or bullish, for the Euro, while a lower number is seen as negative or bearish for the unique currency.
