Relief in times of trouble

Print

Written by Julien Mueller | 29 March 2016
Posted in sentix Euro Break-up Index News

The sentix Euro Break-up Index (EBI) has surprisingly fallen to 16.7 points in March. This reflects the first reduction in Eurozone skepticism since six months ago. Risk reduction has been propelled by a more bullish view on Greece’s perceived current situation.

The sentix Euro Break-up Index slides by 3.2 points to currently 16.7 points in March. Hence, the risk of a potential break of the symbolic 20 points mark has been contained for now. In the past, EBI values above 20 points were suc-ceeded by subsequent crisis summits of the Eurozone community. Furthermore, investors review the current risk of contagion lower than a month ago. Under consideration of the latest developments on the European continent, in-vestors communicate an impression that the public solidarity messages of the Eurozone leaders are credible, thus re-ducing the risk of Eurozone break-up. A positive Signal that benefits especially battered Greece. (EBI reduction by -4.4 points).

20160329 ebi eng 

However, risks have not vanished yet. Comparisons of member countries’ EBI values with their 10-year government bond yields reveal that Portuguese and Greek yields are still too high. Investors willing to take risks could exploit an opportunity.


Background

The sentix Euro Break-up Index is published on a monthly basis and was launched in June 2012. Its poll is running for two days around the fourth Friday of each month. Results are regularly published on the following Tuesday morning. Survey participants may choose up to three euro-zone member states of which they think they will quit the currency union within the next twelve months. Further details on the sentix Euro Break-up Index can be found on: http://ebr.sentix.de.
This month’s reading of 16.7% means that currently this percentage of all surveyed investors expect the euro to break up within the next twelve months. The EBI has reached its high at 73% in July 2012, and touched its low at 7.6% in July 2014.
The current poll in which 1014 individual and institutional investors participated was conducted from March 24 to March 26, 2016.

We use cookies and third-party services that store information in the end device of a site visitor or retrieve it there. We then process the information further. This all helps us to provide you with our basic services (user account), to save the language selection, to optimally design our website and to continuously improve it. We need your consent for the storage, retrieval and processing. You can revoke your consent at any time by deleting the cookies from this website in your browser. Your consent is thereby revoked. You can find further information in our privacy policy. To find out more about the cookies we use and how to delete them, see our privacy policy.

I accept cookies from this site.

EU Cookie Directive Module Information