European investor confidence slumps
European investor confidence has taken a significant hit, falling 10.2 points from November's revised level of 129.7, according to the State Street Investor Confidence Index (ICI) for December 2014.
The global ICI was down 1.6 points to 112.1 from November's revised reading of 113.7, with the confidence index in North America falling by only 1.5 points to 102.6.
"This month's fall in confidence was led by European investors," senior vice president and head of global macro strategy at State Street Global Markets Michael Metcalfe said.
"With no additional monetary stimulus from the ECB in December, hopes have been transferred to the upcoming January meeting. However with Eurozone deflation soon becoming a reality and Greek's default risk rising once more, Eurozone confidence appears vulnerable to any disappointment."
Kenneth Froot, who developed the index with Paul O'Connell, said investors were less inclined to look for exposure to risky assets in December.
He said the fall in oil prices has increased fears about the global growth outlook, which has put the brakes on investors seeking risky asset exposure.
On the other hand, the Asian ICI shot up 1.7 points to 100.
AUTHOR
Malavika Santhebennur
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