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 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

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