Investor morale in the euro zone unexpectedly improved in August, breaking a three-month losing streak, but analysts said there were no signs of a lasting turnaround in sentiment.
The headline Sentix index, which measures investor sentiment in the 19-country single currency bloc, rose to -18.9 in August from -22.5 in July, according to a monthly survey. The reading beat expectations of a further drop to -24.3.
However, the Sentix managing director said Germany continued to weigh heavily on the eurozone and investor morale in Europe's largest economy hit its lowest level since October 2022.
While the subindex for investor expectations in the euro zone rose slightly, Sentix attributed this to a perceived slower pace of deterioration rather than outright optimism.
Sentix said investors saw inflation as losing some of its explosive power, but there were no signs yet of a clear move in the right direction.
"The economy in the euro zone remains in recession mode. There can therefore be no joy about this development," Sentix managing director Patrick Hussy said.
