Global investor confidence is down this month, according to the State Street Investor Confidence Index (ICI).
The global ICI fell by 2.5 points in March to 120.2. The decrease was primarily driven by European institutional investors, with the European ICI falling 1.5 points to 108.6, down from February’s revised level of 110.1.
Geopolitical risk in the Ukraine, Turkey and other emerging markets has yet to have a significant negative impact on institutional investor behaviour.
Risk sentiment remained resilient in North America, while confidence among Asian investors increased, with the Asian ICI rising 7.4 points to 114.3 from the February reading of 106.9.
“Policy and credit fears in China failed to dampen sentiment amongst Asian institutional investors,” says Jessica Donohue, senior managing director and head of research and advisory services with State Street Global Exchange. “Our data suggest that institutions continue to add risk in the region in the face of mounting policy pressures.”
The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence. A reading of 100 is neutral.
Related articles: