Report: Iran War Dampens European Investor Sentiment

Claus Vistesen and Ankita Amajuri of Pantheon Macroeconomics stated in a report that investor sentiment in the Eurozone has been impacted by the Iran war. The overall indicator of the Sentix investor sentiment index for March fell from 4.2 in February to -3.1. Both the current assessment and expectations indicators declined, while Germany's index saw a significant drop and inflation expectations increased sharply. "The decline in investor sentiment provides preliminary evidence that the Iran war and the associated surge in global energy prices are putting pressure on near-term growth prospects," the analysts said. They added that continued energy price shocks may force the European Central Bank to raise interest rates as early as the second quarter. "Recent inflation prospects are changing rapidly."