Global investor confidence appears to have lost some of its momentum, according to the latest State Street Investor Confidence Index.
The index, released today, revealed that global investor confidence had fallen by 7.6 point for November, with the most pronounced decline being among Asian investors where confidence fell 4.1 points.
The index analysis said that confidence was somewhat more upbeat in other regions, with North American sentiment largely unchanged and European sentiment rising by 3.7 points.
Commenting on the index result, Harvard University professor Ken Froot said institutional investors were largely treading water — neither increasing nor reducing their aggregate holdings of risky assets.
However, he said the aggregate figures masked some country and region-specific views.
“This month, for example, institutional investors aggressively pared their holdings in selected markets, such as Australia, while continuing to add to their emerging markets holdings,” Froot said.
He said that, overall, investors were displaying some caution about the current level of equity valuations, and a desire to see more evidence of real economic activity and aggregate demand, particularly in the US, before adding equity exposures.”
