November 8, 2022
According to survey results from the behavioral research company Sentix, investor confidence in the Eurozone increased more than anticipated in November, indicating the improvement in conditions on the European gas and power markets.
The Sentix investor mood index increased from -38.3 in October to a three-month high of -30.9 in November. The prediction was for a little increase in the score to -35.0.
The institute stated that this improvement does not yet indicate a trend reversal. Sentix noted that the increase in situation and expectation values illustrates how sensitively investors’ responses to signals from the energy market in their economic expectations.
According to the think tank, October’s temperatures were higher than average, which implies that gas storage facilities in Germany, for instance, are much more filled than anticipated for November.
As a result, petrol costs on the spot market drastically decreased. Sentix continued, “Fears of a catastrophic gas shortage are waning.
The index for the current condition increased from -35.5 in the previous month to -29.5 this month. The expectations indicator increased from -41.0 in October to -32.3 today.
After expanding by 0.8 percent a quarter earlier, according to official figures released last week, the euro area’s economy expanded by only 0.2 percent sequentially in the third quarter. The German economy, meantime, reported an unexpected quarterly gain of 0.3%.
Last month, the International Monetary Fund predicted that the energy crisis in the Eurozone would significantly slow down. Forecasts called for the currency group to grow by 3.1% this year and 0.5% the following.
Source: RTT News
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