Investors in the eurozone have improved their mood this month

Investors in the eurozone have improved their mood this month

Their confidence in the bloc's economy increased in January, with the relevant index reaching a positive value for the first time since February 2020. The reason for their optimism is the start of vaccination against the new coronavirus, despite the fact that the bloc states had to renew the strict blockades. This follows from a survey by the renowned Sentix Institute. According to the survey, the confidence index, which reflects the mood of investors in 19 monetary union countries, rose to 1.3 points in January 2021 from -2.7 points in December. It thus reached a positive number, for the first time since February 2020, and also exceeded the estimates of economists who expected the index to rise to 0.7 points. The partial index of the current situation in the economy also rose to an 11-month high of -26.5 points from -30.3 points in December. Similarly, the partial index of investor expectations rose to a record 33.5 points from 29.3 points in the previous month. However, Sentix warned of a possible "temporary sobriety" as it said investors underestimated the danger that the new coronavirus would damage the economy more than previously suggested. The actual extent of the damage will not become apparent until the restrictions have been lifted. The think tank concluded that the European Central Bank should continue to support the economy in the euro-paying region very expansively. Sentix also released the results of a survey from Germany, the largest economy in the eurozone. They showed that German investor confidence rose to 9.2 from 6.9 points in December in the first month of 2021. It thus reached the highest level in more than two years.