Euro zone investor morale returned to positive territory in August, with the Sentix index rising to 0.9 from -3.1 in July and exceeding 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 partly absorbed, although high energy costs and weak order books were still weighing 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 was on the horizon for Germany, citing stronger 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, and was conducted between Aug. 6 and Aug. 8.