US uncertainty drives investor sentiment
Slight improvements among European and Asian investors this month were unable to make up for declining sentiment among investors in North America and a 3.5 point drop in State Street's Investor Confidence Index.
However, according to State Street Global Exchange senior managing director and head of research and advisory, Jessica Donohue, the "sizeable gap" between North American and Asian investors is closing.
In North America the index declined 7.6 points from 112.1 in August to 104.9 in September, while European confidence increased by 4.7 points to 101.7 and Asian confidence rose 2.1 points to 95.3.
"The fear of the Fed's liquidity withdrawal has had a disproportionately larger impact in Asia where investors are also worrying about slower growth in China," Donohue said.
"With the worst of those fears yet to materialize, it will be interesting to see if this sentiment gap diminishes further next month."
Harvard University Professor Ken Froot said positive business confidence was a sign that investors would be resilient to the reduction in the Federal Reserve's future asset purchases.
"September's global reading on investor sentiment, taken before the FOMC's (Federal Open Market Committee's) decision to delay the taper, gave back some of the recent gains but remains robust," he said.
Recommended for you
T. Rowe Price believes Australian growth is successfully managing to shrug off consumer weakness, but the firm’s multi-asset team is not yet positive enough to increase its underweight position.
Iress has issued an update denying the validity of “certain statements” made by an alleged threat actor, following a cyber incident last weekend.
The latest budget papers have outlined a $10 million provision for ASIC greenwashing enforcement activity as well as funds for a sustainable labelling regime to be partially met by industry levies.
Betashares has expanded its fixed income solutions with the launch of a new ETF offering exposure to subordinated bonds issued by the big four Australian banks.