EU Investor Confidence Turns Positive For the First Time Since February, but UBS Expects a Double Recession
The investor sentiment in the Eurozone turned negative in March last year, after the lockdowns began, as the Sentix indicator shows. The sentiment has been negative since then, bottoming out in April and May at -40 points. It began improving until November, when we saw another dip lower, due to the new coronavirus restrictions.
However, it improved in December and today’s report is showing that the Sentix indicator has turned positive this month. But the UBS bank is forecasting another recession in the Eurozone.
Eurozone January Sentix Investor Confidence
- January Sentix investor confidence 1.3 points vs 1.9 expected
- December Sentix investor confidence was -2.7 points
Investor morale in the euro area continues to ride high at the start of the new year, bolstered by vaccine optimism for the most part. This is the first time that the headline reading has returned to positive territory since February last year. Sentix notes:
“Now that more vaccines have been approved, investors apparently expect a quick implementation of the vaccine strategy and thus a definitive end to the economic and personal freedom restrictions”.
UBS Revises 2021 GDP Down for the Euro Area
“We expect fiscal and monetary policy to remain supportive in 2021, with a cautious degree of normalisation in 2022.”
Top 4 Brokers
