Eurozone investor confidence eroded sharply in June as a renewed escalation in trade tensions between the US and China hurt sentiment in the single currency bloc, survey data from the behavioral research institute Sentix showed on Tuesday.
The investor confidence index for the euro area fell by 8 points to -3.3 from +5.3 in May. Economists had expected a score of +2.5.
“The renewed escalation in the US-China trade dispute is also having a considerable impact on the Euro zone economy,” Sentix said.
Investor confidence in Germany also fell sharply in June to reach negative territory for the first time since March 2020.
“This makes a recession very likely,” the think tank said.
The investor confidence index for the US shed 10 points to its lowest level since February 2016.
Meanwhile, Austria registered a massive fall in economic expectations, thanks to political factors.
Among the surveyed countries, investor confidence improved only in Switzerland.
The latest Sentix survey was carried out among 906 investors, of which 247 were institutions, between June 6 and 8.