According to Reuters, the eurozone Sentix investor confidence index weakened in April for the third consecutive month. Concerns regarding a slowdown of global economic growth as well as a trade war between the US and China weighed on investor sentiment.
The index declined to a level of 19.6 in April from 24 in the previous month. The drop was due to a deterioration in the expectations index, which turned negative for the first time since July 2016.
Meanwhile, the investor confidence index for Germany fell to 24.4 in April from 29.1 in March, marking the third decline in a row.
There are growing concerns over the trade conflict between China and the United States in Germany’s industrial sector. The largest German companies fear that the duties on imported goods imposed by the United States will have an extremely negative impact on all European countries, including Germany. Many Germany-based firms, particularly carmakers, have most of their manufacturing processes and supply chains linked to both China and the United States.
The survey of 982 investors conducted by Sentix think tank took place on April 5-7, 2017.
