Eurozone investor confidence indicator improved sharply in June - Sentix

According to the report from Sentix, the signs are pointing to a global economic upturn. This is not too difficult after such a serious standstill of the real economy as we experienced in April. This is why the sentix economic indices also show a mixed picture. On the positive side, expectations are rising sharply. The economy is waking up from its deep sleep. But the road to normality is long. The situation values are still deep red and thus continue to indicate a recessionary environment. The question now is how strong and how far the global economy can recover. 

The relaxation of measures to combat the pandemic is also bringing economic activity to life. But the road out of recession is a long one. In Euroland, the situation values are just rising from -73 to -61.5 points. But the upswing out of the valley of tears has definitely begun and should continue for the time being. In fact, the momentum is actually increasing. Expectations are rising sharply by 24.8 points to the +21.8 mark. This is the best value since November 2017, and the overall index is improving accordingly strongly to -24.8 points.

For the eurozone, investors expect that within a year, just over 50% of the slump can be made up. This means that in a year's time we would still be noticeably below the pre-crisis level. And this despite all the stimulus measures, the fiscal packages and monetary easing. An upswing has begun, but a real trend reversal is not yet assured.