Euro zone investor morale darkens on renewed pandemic restrictions

Investor morale in the euro zone deteriorated in December to reach its lowest level since April as renewed restrictions to contain a fourth wave of coronavirus infections clouded growth expectations, a survey showed on Monday.

Sentix’s index for the euro zone fell to 13.5 from 18.3 in the previous month. Analysts had on average expected the December reading to come in at 15.9, according to a Reuters poll.

Sentix Managing Director Manfred Huebner said the tightened lockdown measures, especially in Germany and Austria, considerably dampen the assessment of current conditions in the euro zone.

“A slowdown and even a recession no longer seem to be ruled out now. These lockdowns hit the economy harder than before,” Huebner said.

A current conditions index fell for the third month in a row to 13.3 from 23.5 in November, dropping to its lowest since May. Still, an expectations index rose to 13.8 from 13.3 in the previous month.