Eurozone Sentix Investor Confidence smashed to -18 in April vs. -9.2 expected

Eurozone’s investor sentiment kept deteriorating in the fourth month of 2022; the latest data published by the Sentix research group showed on Monday.

The gauge crumbled to -18 in April from -7 in March vs. -9.2 expected. The index hit its lowest level since July 2020, hinting toward an incoming recession in the second quarter.

A current conditions index fell to -5.5 in April from 7.8 booked in March.

An expectations index fell to -29.8 from -20.8, its lowest level since December 2011.

Key takeaways

“While the dip in March's morale had been expected due to the start of the war in Ukraine, the strong fall in sentiment in April once again puts investors on the back foot.”

"Investors do not expect that the central bank can rush to the rescue with a more relaxed, more expansive monetary policy because of the still considerable pace of inflation growth."

"No region is able to resist the negative momentum at the moment, even the important Asian region is already fighting stagnation.”

EUR/USD reaction 

The shared currency remains unfazed by the disappointing Eurozone Sentix data. EUR/USD is losing 0.15% on the day, currently trading at 1.1035.

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.