30 July 2018
Posted in
sentix Euro Break-up Index News
After the Euro Break up Index indicated a new danger for the Euro-Zone in May, the situation calms down for the second month in a row. The overall index for the Euro zone fell significantly by 3.9 percentage points from 12.3% to 8.4%. Concerns about Italy are also declining.
The sentix Euro Break-up Index fell significantly to 8.4 percentage points in July. The decline in the Italian subindex, which fell from 9.5 to 7.2 points, made a major contribution to this. Nevertheless, the refugee crisis, but also the political situation in Italy and Spain, remains a constant hot topic. At any time, a government crisis could flare up again in these countries and make a break-up of the euro zone more likely. It is striking that the stock market in Italy, but also the yields of Italian government bonds, do not yet in any way reflect the indicated calming in the EBI. Either a buying opportunity or the risk that the recent movement in the Euro Break-up Index was just an interim recovery and the next shock wave is imminent. We think the latter is more likely.
sentix Euro Break-up Index: Headline Index Euro area and Sub-index Italy