Global investor confidence declines

Global investor confidence declined in June with all regions reporting a waning appetite for risk, indicating any improvements the previous month were short-lived.

The State Street Investor Confidence Index quantitatively measured investor risk appetite by analysing the buying and selling patterns of institutional investors.

Current risk appetite was 84.9, down from a revised 87.3 in the previous month, compared to a neutral reading to 100.

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Asian investor confidence fell from 95.9 to 91.9, the largest regional fall, while it fell from 103.3 to 99.3 in Europe and 81.6 to 80.6 in North America.

State Street said the decline in confidence was in conflict with stock markets reaching record highs.

Michael Metcalfe, senior managing director and head of global macro strategy at State Street Global Markets, said: “The minor stumble in investor confidence is notable not just because it runs counter to the new highs made in the prices of some risky assets but because confidence fell in all three regions.

“Investors may not be bound by the same supply chain linkages that global manufacturing is, but the risk of contagion remains. The fact confidence fell the furthest in the APAC region is perhaps testimony to questions of how much stimulus will be forthcoming from policymakers in the region.”

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