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Eurozone Sentix investor confidence plunges amid spread of Wuhan coronavirus

Christian Fernsby |
Eurozone investor sentiment declined the most on record in March, reflecting fears of a global recession amid the spread of Wuhan coronavirus, results of a closely watched survey revealed today.

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Topics: EUROZONE    WUHAN    CORONAVIRUS   

The investor confidence index dropped to -17.1 in March from 5.2 in February, the behavioral research institute Sentix said. The decline of 22.3 points was the sharpest within a month since the survey began. The reading was the lowest since April 2013.

The Sentix said the new coronavirus, which is now spreading significantly across the globe and requires consistent measures to contain it, is plunging the global economy into recession.

The think tank noted that never before have economic data from Sentix collapsed so sharply in all regions of the world within a month.

The current conditions index slid to a four-month low of -14.3 from 4.0 in February.

At the same time, the expectations index plunged to -20.0, the lowest since August 2012, from +6.5 in February. This is a "negative surprise" and means that investors

re preparing for a long period of economic weakness, the think tank said.

The survey was conducted among 1,155 investors between March 5 and 7.

The central bank theme index of the survey jumped to an all-time high of 37.75 points, which means nothing other than that investors are demanding a strong signal from monetary policy, Sentix said.


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