Investor sentiment in the euro zone significantly improved in March, as indicated by a survey released on Monday. Economic expectations reached their highest level since July 2021, boosted by Germany's new debt plans.
The Sentix index for the euro zone surged to -2.9 in March from -12.7 in February, surpassing analysts' expectations of -8.4.
Specifically, the measure focusing on economic expectations for the upcoming six months climbed to 18.0 in March from 1.0 in the previous month. Additionally, the assessment of the current economic situation improved to -21.8 in March from -25.5 in February, according to the survey of 1,097 investors conducted from March 6-8.
The positive trend was attributed to new debt-financed investments planned for armament in Europe and Germany. Sentix highlighted the strong investor confidence in Germany, stating that "investors are downright euphoric" about the country.
Expectations for Germany alone increased by 26.3 points to 20.5, contributing to the overall index rising by 17.2 points to -12.5.
On a different note, Sentix pointed out a significant decline in both the current situation and expectations values in the United States, contrasting the optimism seen in the euro zone.