Euro zone Sentix index unexpectedly falls in June as ECB fails to impress

BERLIN, June 9 Mon Jun 9, 2014 4:30am EDT

BERLIN, June 9 (Reuters) - Sentiment in the euro zone unexpectedly fell in June with investors unimpressed by the European Central Bank's package of measures to kickstart growth, the Sentix index survey showed on Monday.

Sentix research group said its index tracking morale among investors in the euro zone indicated investors were more pessimistic than a month ago about the economic situation now and for the next six months.

The index fell for a second consecutive month to 8.5 in June, its lowest since December 2013.

It skidded from 12.8 in May, confounding a Reuters poll forecast for a rise to 13.2 and easily undershot the lowest estimate for 12.4.

The index was based on a survey of investors conducted between June 5 and June 7. The ECB announced measures to boost growth on June 5.

Sentix said the decline was surprising because investors viewed the economy in other parts of the world, especially in emerging markets, more positively and also in light of the ECB's action last week.

"Investors obviously do not appreciate this aspect of the ECB's monetary policy at the moment," said Sentix.

The sub-index on the economic situation plunged to 0.3 from 7.5. Expectations for the outlook fell to 17.0, the lowest reading since August 2013, from 18.3 in May.

"The decline in expectations is remarkable because last Thursday the ECB agreed a comprehensive package of measures to fight the deflationary tendencies in the euro zone," said Sentix.

The ECB said after a meeting on Thursday that it was cutting its benchmark interest rate to a record low 0.15 percent and lowering its deposit rate into negative territory.

In a bid to boost bank lending, ECB chief Mario Draghi also announced a 400 billion euro scheme and he also fuelled expectations that the ECB could introduce a broad-based asset purchase programme.

ECB Vice President Vitor Constancio said on Friday it would take the ECB until December to assess whether the steps announced last week had succeeded.

Contrasting with the results for the euro zone overall, the index tracking Germany, Europe's biggest economy, rose to 28.8 in June, almost touching April's level again after a dip in May. (Reporting by Madeline Chambers; Editing by Susan Fenton)