Investors are more confident than they were in November.
State Street’s Global Investor Confidence Index rose to 95.9 in December, up 4.7 points from November’s revised reading of 91.2.
The increase was the result of a mild increase from 89.2 to 90.2 in U.S. sentiment combined with a strong increase in European sentiment, which rose to 107.1 from November’s revised reading of 101.0.
Sentiment in Asia fell slightly over the month to 98.5 from 99.3, fuelled by increased growth concerns in the region.
“Emerging market investors are still concerned that tapering will strangle world growth instead of seeing higher rates as a result of stronger growth worldwide,” says Michael Metcalfe, head of cross-strategy research at State Street Global Markets. “We can see this in the way that risk assets in emerging economies continue to struggle and also in this month’s mild decline in Asian investor confidence.”
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