Euro zone investor morale returned to positive territory in August, with the Sentix index rising to 0.9 from -3.1 in July and beating a Reuters poll forecast of -0.5. The gain marked a fourth straight monthly increase and the highest reading since February 2026. Sentix said the improvement was driven mainly by a sharp rebound in assessments of current conditions, while expectations also strengthened. The current situation subindex climbed to -8.0 from -14.8, and the expectations gauge rose to 10.3 from 9.3. Sentix said the confidence shock linked to the Iran war appeared to have been partially absorbed, although high energy costs and subdued order books continued to weigh on the outlook. Germany's headline Sentix index rose to -11.9 from -19.4, its third consecutive increase and highest level since February. Sentix said, "Further economic stabilisation is on the horizon for Germany," citing stronger economic data and second-quarter growth of 0.2% that helped the economy avoid another recession. The survey covered 1,097 investors, including 213 institutional investors, between Aug. 6 and Aug. 8.