European investor confidence has plunged to its lowest level in almost three years this month, as the region's debt crisis intensified, according to the Sentix research institute.
An index measuring sentiment in the euro-area economy declined to minus 24.5 from minus 14.7 in April, Germany-based Sentix said yesterday. That's the lowest since July 2009.
The 17-nation euro-area economy will shrink 0.3pc this year, according to the European Commission. The ECB has pumped more than €1 trillion into the banking system to fight the crisis.
"The effect of central bank money on markets and the economy has already worn off just a few weeks after the ECB's second three-year tender," Sentix said.
"Investors expect a pronounced recession in the euro area."