Eurozone investor confidence rebounds in May after tariff shock — Sentix

Investor sentiment in the eurozone showed a stronger-than-expected rebound in May, recovering from the sharp decline caused by recent statements from US President Donald Trump regarding tariffs. Despite this improvement, the overall mood remains fragile, according to a Sentix survey published on Monday. The survey polled 1,068 respondents between May 1 and May 3.

The Sentix investor confidence index for the eurozone rose to -8.1 in May from -19.5 in April, surpassing analysts’ expectations of -12.5.

The current economic situation indicator unexpectedly increased to -19.3—the highest reading since August 2024. However, it still points to a negative outlook. Meanwhile, the expectations component for the eurozone rose by 19.6 points to 3.8. In Germany, the bloc’s largest economy, expectations surged more than 20 points to 5.5. Sentix analysts say the shift suggests investors are less worried about a recession in Europe.

As noted by Reuters, the improvement appears to reflect growing optimism in light of the European Commission’s measured response to US trade measures.