BERLIN (1) – Investor morale within the euro zone fell to an all-time low in April and the bloc’s financial system is in deep recession because of the coronavirus, which is “holding the world financial system in a stranglehold”, a survey confirmed on Monday.
Sentix’s index for the euro zone fell to -42.9 from -17.1 in March. The 1 consensus forecast was for a fall to -30.3.
The drive of recession was a lot stronger in April than in March, stated Sentix managing director Patrick Hussy.
“The scenario is … a lot worse than in 2009,” Hussy stated. “Financial forecasts so far underestimate the shrinking course of. The recession will go a lot deeper and longer.”
Sentix surveyed 1,173 traders between April 2 to 4.
“By no means earlier than has the evaluation of the present scenario collapsed so sharply in all areas of the world inside one month,” Hussy.
In Germany, the sentiment index fell to -36.zero from -16.9 in March, sinking to its lowest since March, 2009.
The impression of the coronavirus disaster was being cushioned for a lot of German staff by the social security internet, stated Hussy.
“Nonetheless, these solely have a brief-time period impact and will at finest postpone an adjustment response,” stated Hussy, including that there was no clear turnaround in sight.
Writing by Paul Carrel, modifying by Thomas Escritt