Institutional investors are less confident this month than they were in June, according to State Street.
The State Street Investor Confidence Index dropped 10 points to 87.0—the biggest monthly decrease since January 2004.
Leading the decline were North American investors, whose confidence fell sharply to 95.8 from 107.0. The fall was mirrored in Europe, where confidence dropped to 90.4 from 98.1.
However, Asian investors maintained their risk appetite at recent levels and the index’s decline was modest, falling to 83.5 from 84.0.
“Confidence among Asian investors has run somewhat below that exhibited among their European and North American counterparts for much of 2007,” says State Street Associates director O’Connell. “As a result, Asian investors have displayed less susceptibility to the turmoil in the sub-prime and credit markets.”
To comment on this story email craig.sebastiano@rci.rogers.com.