Euro zone investor morale worsens in November but beats forecast

A general view shows the trading floor as the German share price index DAX reacts to the 2020 U.S. presidential election at the stock exchange in Frankfurt, Germany, November 4, 2020. REUTERS/Kai Pfaffenbach

BERLIN (Reuters) - Investor morale in the euro zone fell for a second consecutive month in November but the drop was not as bad as feared because lockdowns imposed to curb the spread of the coronavirus did not hit the economy as hard as expected, a survey showed on Monday.

Sentix’s index for the euro zone dropped to -10.0 in November from -8.3 in October. That compared with a Reuters forecast for a reading of -15.0.

“The renewed lockdowns in many EU countries have less impact than feared,” said Manfred Huebner, managing director of Sentix.

He said this was likely due to positive developments in Asia and the United States, where there have not been drastic restrictions on economic activity.

The current situation index dipped to -32.3 from -32.0 the previous month. The expectations index decreased to 15.3 from 18.8, hitting its lowest level since May.

In Germany, the current situation index improved for the sixth consecutive month, hitting its highest level since March.

Expectations in Europe’s largest economy dropped to their lowest level since May but Sentix said: “They remain positive, indicating that the economic recovery path has not yet been abandoned.”

Sentix surveyed 1,114 investors from Nov. 5-7.

Reporting by Kirsti Knolle; Editing by Michelle Adair