Investor confidence declines in April
The State Street Global Markets Global Investor Confidence Index (ICI) has decreased 1.5 points to 92.7 from March’s revised reading of 94.2, driven by drops in North America and Asia.
The North American ICI fell to 92.2 from 94.8 and the Asian ICI fell to 91.8 from 92.9; however, Europe saw a three point increase to 94.3.
Rajeev Bhargava, head of investor behaviour research at State Street Associates, said investor risk appetite remained largely in a holding pattern in April with the global index declining just over one point, the smallest change in over six months.
“While investor confidence in the US and Asia contracted slightly, this was largely offset by a rise in sentiment from European Investors, where improving vaccine procurement numbers and more timely member state vaccination rollout targets may have fuelled some much needed optimism in the region,” Bhargava said.
The index was developed to measure investor confidence or risk appetite quantitatively by analysing the buying and selling patterns of institutional investors and was done in partnership with FDO Partners.
The greater the percentage allocation to equities, the higher risk appetite or confidence; a score of 100 was neutral.
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