Eurozone Investor Sentiment Strengthens

(RTTNews) - Eurozone investor sentiment improved for the third straight month in July as concerns from the Iran conflict fade and German government measures boost confidence, survey data from the behavioral research institute Sentix showed Monday.

The investor confidence index rose to a four-month high of -3.1 from -13.4 in June. The reading was expected to improve to -8.9.

There was a marked improvement in the expectations index as latest political measures in Germany appears to be building confidence, said Sentix.

The expectations index rose sharply to +9.3 from -6.5 in the previous month. The indicator turned positive for the first time since March 2026. The current situation indicator posted -14.8 in July, up from -20.0 in June.

Market participants expect economic stabilization in the euro area to continue over the coming months.

"The slump in sentiment caused by the Iran conflict is slowly being overcome," Sentix said. "The German government's latest reform efforts are having an impact."

Further, the Sentix inflation barometer signaled a significant easing of inflationary concerns that had arisen due to high crude oil prices. The indicator rose to -13.75 from -38.

Sentix said Germany, which was previously the problem child, is also getting back on track. The investor confidence index climbed to -19.4 in July from -28.5 in June.

Although the current situation index in Germany dropped to -39.8 from -42.5 in June, the expectations index reached positive territory for the first time since March 2026. The corresponding indicator moved up to 3.5 from -13.3 in the previous month.