Eurozone investor confidence hit by Brexit; Sentix hits 18-month low

Investor sentiments in the euro zone have been badly hit, on account of Britain’s likely exit from the European Union, as investors, businessmen and analysts fear major economic fallout post the UK referendum that took place on June 23.

The Sentix index fell to 1.7 from 9.9 in June. Analysts polled by Reuters had expected a reading of 5.0. Reflecting those concerns, the sub-index measuring expectations fell to -2.0 from 10 in June, reaching its lowest level since November 2014. A sub-index measuring the euro zone's current condition fell to 5.5 from 9.8. The survey was conducted on population strength of 1,056 investors between June 30 and July 2.

Sentix added that the European Central Bank faces huge pressure from markets to act. A sub-index measuring monetary policy expectations, rose to 30.5 from 15. An index tracking Germany showed sentiment in Europe's largest economy fell to 18.4 from 20.7. Investors were skeptical about the outlook for the German economy and the index measuring expectations fell to 2.7 from 7.9.

"The Brexit vote at the end of June in the United Kingdom is having a very different impact globally in terms of economic expectations," Sentix said in a statement.

Meanwhile, the Frankfurt-based research group also stated that investors are already suspecting an economic danger, close to stagnation, wary of the possible after-effects of Brexit. The index is expected to decline to 7.4 in July from 9.9 in June, reports said.