sentix Survey Essentials (English)

Equity uncertainty yet to dampen Emerging Market optimism

The latest sentix survey throws up a couple of notable features. Firstly, there remains an apparent lack of conviction on the medium-term outlook for European bonds, despite high-optimism on the near-term outlook, as bund yields hit historic lows (see page 4). Secondly, there are signs that investors' optimism on the medium-term outlook for equities may be weakening, with survey readings for the EuroSTOXX having fallen back after several weeks of relative resilience (Chart 6, page 3). In comparison, sentiment towards the Emerging Markets has remained relatively upbeat (Charts 2 and 3, page 2). As yet, equity uncertainty has failed to materially curb investors' optimism on medium-term outlook for EMs.