The investor confidence index in the Eurozone increased in October following a three-month decline. Sentix, a research company based in Frankfurt that analyzes markets, released the Eurozone General Investor Confidence Index data for October. The Eurozone General Investor Confidence Index, which was 15.4 points in September, rose by 1.6 points to -13.8 this month after a three-month decline. Expectations regarding the rising index in October were aimed at decreasing to -15.9. The Expectations Index, measuring investors’ expectations for the next 6 months, increased from -8 to -3.8 due to the effects of interest rate cuts by the European Central Bank (ECB) and stimulus packages announced by the Chinese government. The Current Situation Index decreased from -22.3 to -23.3, extending its consecutive decline for the fourth month. According to Sentix, the statement included, “The downward trend in the economy has stopped for now. Therefore, the Eurozone economy is starting to make an effort to emerge from economic stagnation.”

The investor confidence survey was conducted from October 3 to October 5 with the participation of 1150 investors.

GERMAN ECONOMY IN “RECESSION” MODE

On the other hand, the Investor Confidence Index for Germany, the largest economy in the Eurozone, rose by 3.2 points to -31.5 in October. The increase in the index after declining for 3 consecutive months caught attention. The Current Situation Index in Germany also rose from -48 to -47.8. Sentix, indicating that the German economy is “still in recession mode,” stated, “The economic outlook that has improved so far is only based on global stimulus coming from the world economy. Especially the recent growth momentum in China is affecting expectations in Germany. However, the response remains modest.”