State Street ICI index down to 88 in March
In March 2013, the State Street Investor Confidence Index published monthly by State Street Global Markets fell 3.4 points to finish at 88.0, down from February’s reading of 91.4.
According to the firm, the decrease was driven mostly by North American institutions, whose confidence decreased 4.2 points from February’s level of 99.7 to settle at 95.5.
The change in European investors’ sentiment, while also negative, was less pronounced, with the European ICI declining just 0.4 points to 91.7 from February’s revised reading of 92.1.
Risk appetite among Asian institutional investors increased slightly, rising 1.8 points from 85.5 to finish the month at 87.3.
“Investors have had to contend with three setbacks emanating from Europe over the past month: the Italian election result on February 25, President Draghi’s comments on March 7, and the announcement of Cypriot bailout conditions on March 15,” commented Kenneth Froot, one of the developers of the index.
He added: “Institutional investors continued to accumulate equities up until March 7, but thereafter adopted a more cautious tone. It remains to be seen whether this will mark a consolidation of positioning in advance of a further round of risk-taking, or a more meaningful pause in risk appetite.”