Investor sentiment in the Euro area took a significant hit in July, as both current conditions and future expectations weakened due to escalating geopolitical concerns, according to a prominent survey released on Monday.
The Sentix investor confidence index dropped sharply to -7.3 in July from +0.3 in June, marking a stark reversal from the first positive score since February 2022. Analysts had anticipated a less severe decline to -0.6.
Detailing the downturn, the current situation index fell to -32.3 in July from -26.3 in June, while the expectations index dropped by 8.5 points to 1.5.
The survey highlighted that investors are increasingly anxious about the upcoming state elections in Germany, the French elections, and the U.S. presidential election later this year.
