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Sentix research group's index tracking morale
among investors in the euro zone tumbled to -13.7 in October
from -9.8 the previous month. That undershot the consensus
forecast in a Reuters poll for a reading of -11.5.
"While expectations were only just below the zero-mark in
September, they are now clearly in negative territory and that
means a technical recession in the euro zone - two consecutive
quarters of contraction - is ever more likely," Sentix said in a
statement.
"It's conspicuous that neither the European Central Bank's
rhetoric nor its measures were able to drive up investors'
expectations of the economy this month," Sentix added.
Last week the ECB laid out plans to buy rebundled packets of
debt within weeks to shore up the flagging euro zone economy and
its president said the bank would do more if needed.
A sub-index of expectations for the euro zone's economy fell to
-7.3 in October, its lowest level in two years, after a reading
of -2.5 in September.
Investors' perception of the current euro zone situation dropped
to its weakest level since August 2013.
An index tracking Germany plunged to its lowest level since
September 2012, with Sentix saying investors seemed to be
increasingly concerned about economic risks such as tensions
over Ukraine and other crises abroad as well as the U.S. Federal
Reserve's tighter monetary policy.
(Reporting by Michelle Martin; Editing by Alexandra Hudson)
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