Euro zone investor morale falls in October, Sentix survey shows

• Euro zone investor morale fell to 2.7 in October from 5.1 in September.
• The Sentix index for Germany slipped to -3.6 points in October.
• Economic expectations in the euro zone fell by 5 points to 8.8.
• Current situation subindex in the euro zone remained stable at -3.3.
• Germany's current situation index rose to its highest level since May 2023.

Investor morale in the euro zone declined in October, falling to 2.7 points from 5.1 in September, according to a survey by Sentix released on Monday. The decrease was attributed to a notable setback in investors' expectations for the future, despite their assessment of current economic conditions remaining unchanged.

The Sentix index for the euro zone had previously reached its highest reading in over four years in September. In October, the current situation subindex remained stable at -3.3 points, while economic expectations dropped by 5 points to 8.8 points.

In Germany, hopes for an economic upturn persisted, though Sentix noted a dampening of expectations that should not be overlooked. The headline index for Germany slipped to -3.6 points from -2.8 points, with expectations falling to 8.0 points from 12.3 a month earlier. However, Germany's current situation index rose for the fourth consecutive time, reaching its highest level since May 2023 at -14.5 points. The survey polled 1,030 investors, including 218 institutional investors, between October 1 and October 3.