Data published by Sentix showed that in December, the eurozone investor confidence index declined sharply, and reached its lowest since April 2021, which was due to a drop in the index of the current situation (to 13.3 from 23.5 in November).
The Eurozone investor confidence index was 13.5 points compared to 18.3 points in November. Economists had expected a decline to 14.5 points. The drop in the index was due to blocking measures due to the coronavirus, primarily in Germany and Austria.
Meanwhile, the expectations index for the eurozone rose to 13.8 points compared with 13.3 points in November. However, Sentix noted that the risks are increasing, and there are signs of an increasingly negative impact of the central bank's policy. While the continuation of expansionary monetary policy is likely to contribute, in particular, to inflation, the transition to a restrictive course will obviously be burdened by liquidity constraints. The ECB thus seems to be definitively "behind the curve".