Investor confidence in the Eurozone fell in January to a four-year low

Investor confidence in the Eurozone fell in January to a four-year low against a background of the likelihood that Britain will leave the European Union without agreement, the effects of protests on “yellow vests” in France and weaker global economic growth.

The survey of Sentix Group shows that Eurozone investors confidence index has fallen from -0.3 points to -1.5 points. The index is falling for the fifth consecutive month, reaching its lowest level since December 2014. However, the analysts expected the indicator to fall to -2.8 points.

The expectations index declined from -18.8 points to -19.3 points in January. The sub-index for the assessment of conditions has now dropped from 20 to 18 points.

Against this background, the Eurozone is dangerously close to stagnation, according to Sentix.

The possible Hard Brexit and the lack of support from the world economy remain negative factors. In any case, the investors do not expect central banks to provide swift support.

A separate index of investor confidence in Germany reported a decline in January to from 7.2 points to 6.1 points, which is a third consecutive decline.

Sentix surveyed 998 investors in period January 3-5.