Confidence in the euro zone fell for the third consecutive month to its lowest level since May 2013, suggesting that the single-currency bloc will enter a recession. The Sentix index, a barometer of investor morale in the euro zone, fell to -13,7 in October, from -9,8 the previous month. A reading that turned out to be lower than Reuters expectations of -11,5.
The expectations sub-index dropped to -7,3 in October from -2,5 in September. “While expectations were just below zero in September, they are now clearly in negative territory and this means that a technical recession in the eurozone – two consecutive quarters of declining – is even more likely,” a Sentix note said.
"It is clear that neither the rhetoric nor the measures of the European Central Bank have been able to improve investors' expectations about the economy this month."
