Investor confidence index sees third consecutive monthly fall

The State Street Global Investor Confidence Index (ICI) continued to fall in December, dropping 14.4 points.

The index fell 14.4 points from 90.3 in November to 75.9, led by the North American index and a smaller drop in the Asian index. On the other hand, the European index rose 10.8 points to 102.6.

This was the third consecutive monthly fall in the global index.

Marvin Loh, senior macro strategist at State Street Associates, said: “The decline was most pronounced in North America, which fell 16.4 points to 72.2, levels last seen in spring 2020 on growing recessionary concerns.

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“Investor appetite in Asia also deteriorated, with a rapid escalation in COVID-19 cases in China as the government has quickly abandoned its strict health protocols.

“The ICI reading for Europe bucked the overall negative trend, rising 10.8 points to 102.6, its second-highest reading of the year as stable fuel costs and growing comfort that the Continent could avoid the worst-case scenario in its ongoing energy emergency.”

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’ research and advisory services business, in partnership with FDO Partners.

It measured investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.

A reading of 100 would be neutral; it would be the level at which investors were neither increasing nor decreasing their long-term allocations to risky assets.