US, Asia investor confidence up but Europe’s down says State Street index

State Street’s index series for measuring investor confidence shows improvements in North America and Asia in January, but an extended fall in Europe.

Constructed by State Street Global Markets, the investment research and trading arm of State Street Corporation, the Global Investor Confidence Index added 5.4 points from December’s (revised) reading of 81.4 to finish at 86.8. The increase was driven by North American institutions, whose confidence rose 7.8 points from December’s (revised) level of 78.5 to reach 86.3.

Institutional investors in Asia also felt more optimistic, and this pushed the Asian ICI up from 87.1 in December to 91.0 in January, an increase of 3.9 points.

In contrast, risk appetite among European institutional investors extended its decline, falling 4.5 points from a (revised) reading of 94.1 in December to settle at 89.6.

Kenneth Froot, Harvard University professor and co-founder of the index series, said: “2013 has opened with something of a turnaround in demand for global equities by institutional investors. This comes on the heels of a two-and-a-half year period of persistent ‘de-risking’ by these institutions. We will be watching the data closely to see if this is a short-term deviation from trend, as we saw in mid-2012, or whether it signals a more concerted effort to rebuild core equity positions.”

 

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