Institutional investors are more confident this month, according to the State Street Investor Confidence Index.
The index increased to 87.4 from November’s revised reading of 82.2.
On a regional basis, investor confidence rose strongly in North America to 97.8 from 90.7. The confidence of European investors rose to 99.1 from 90.2, while the confidence of Asian investors dipped to 93.5 from 99.7.
“The strong trend upwards in European investor confidence remained intact this month,” says State Street Associates director Paul O’Connell.
“Asian investor confidence, however, took a pause after eight consecutive monthly increases, as investors in that region reduced their allocations to a number of equity markets, notably Australia.”
The index measures investor confidence on a quantitative basis, analyzing actual buying and selling patterns of institutional investors. The more of their portfolio that institutional investors are willing to devote to equities, the greater their confidence.
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