Eurozone investor confidence indicator rose sharply - Sentix

According to the report from Sentix, in April, the Economic Index for the Eurozone rose very strongly by 8.1 points, to 13.1. The leading indicator reaches its highest level since August 2018. In the latest data, the assessment of the current situation is particularly positive - and that worldwide! In April, the current situation values jumped by a whopping 12.8 points, reaching a level that prevailed before the Corona crisis. Another positive aspect is that the expectations, which have been rising for many months, are not being disappointed and the current situation values are now gaining ground dynamically. The large gap between expectations and the current status is slowly closing, without the high expectation values weakening. The 6-month outlook even improved by another 2.3 points. The expectations component for the euro area has reached a new all-time high of 34.8 points!

Investors are building their expectations on accelerated vaccination success across the EU. The economic recovery process is supported by a massive expansion of fiscal policy. Investors even expect the fiscal impulse to expand. Since at the same time there are no signs of a significant departure from the expansive monetary policy of the central banks, the applied inflationary pressure remains high. Significant inflationary risks are in place for the coming months.