Euro zone investor morale slumps

Investor morale in the euro zone fell to its lowest level in nearly two years in April, a survey showed on Monday, pointing to the beginning of a recession in the second quarter of 2022.

Sentix's index for the euro zone fell to -18.0 in April from -7.0 the previous month, hitting its lowest level since July 2020. A Reuters poll had pointed to a reading of -9.2.

A current conditions index fell to -5.5 from 7.8, its lowest level since April last year, while an expectations index fell to -29.8 from -20.8, its lowest level since December 2011.

While the dip in March's morale had been expected due to the start of the war in Ukraine, the strong fall in sentiment in April once again puts investors on the back foot, said Sentix.

The conflict and related sanctions and uncertainties are pushing the euro zone economy towards a recession, it added.