Euro Zone Investor Morale Plummets, Breaking Eight-Month Streak

Investor morale in the euro zone fell sharply in July, ending an eight-month improvement streak. Sentix's index dropped to -7.3 points from 0.3 last month, against analysts' expectations of a zero-point drop. The decline is attributed to economic uncertainties in Europe and the U.S.

Investor morale in the euro zone has sharply declined in July, ending an eight-month streak of improvements, according to a survey released on Monday. Sentix's index fell to -7.3 points for July, compared to 0.3 in June, dashing expectations for a milder drop to 0.0.

The index on expectations also showed a decrease, falling from 10.0 in June to 1.5 in July, raising concerns among forecasters. Sentix stated that the European economic recovery has come to an abrupt halt.

Investors are worried about upcoming French and German state elections, as well as the U.S. presidential election. Germany, Europe's largest economy, also saw a morale drop, with its current situation index declining to -32.3 from -26.3 in June. The survey, which involved 1,140 investors, was conducted between July 4-6.

(With inputs from agencies.)