Confidence among euro area investors dropped sharply this month, as the spread of the coronavirus raised expectations the 19-nation recession would relapse into recession.
Sentix investor confidence came in at -17.1 in March, the lowest since April 2013 and the first negative reading since November 2019, compared to +5.2 in February. That was steeper than analysts’ projections of -11.0.
The expectations survey registered -20.0, the lowest record since August 2019, versus a prior of +6.5, while the current situation gauge plunged to -14.3 after +4.0 last month.
“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,” Sentix report said.
However, a report released earlier today showed that German industrial production rose 3.0 percent in January, exceeding expectations of a 1.7 percent increase.
Later in the week, the European Central Bank will decide on interest rates and monetary policy, while will publish the latest eurozone economic projections.
AS of 10:50 GMT, the
euro retreated from the session’s top of $1.1494, the highest since late
January 2019, but still trading higher at $1.1418.