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Italian elections effects

March 5, 2013

European investor sentiment declined more than anticipated in March, as inconclusive elections in Italy unsettled financial markets and spread insecurity among investors. According to Germany-based market analysis institute Sentix, the economic sentiment index fell back to minus 10.6 in March from minus 3.9 points in February, to the lowest since December. 

The median economists’ forecast predicted a more moderate decline to minus 4.3, according to Bloomberg. In February, the confidence gauge had reached the highest level in more than 1 1/2 years. “The outcome of the election has dramatically raised the uncertainty about how things are going to go in Italy and radiated that uncertainty out into the euro area,” Sentix economist Sebastian Wanke commented on the latest survey results. However, this month’s decline in sentiment should be a one-time adjustment rather than a trend reversal, Sentix added.

From: LGT Navigator Abo