Investor confidence declined across North America and Asia during November, and the rise in European confidence levels was still not enough to stop global investor confidence following this downward trend.
“The Global ICI decreased to 114.0, down slightly by 1.8 points from October’s revised reading of 115.8,” a statement from State Street said.
“North American and Asian investors paced the decline. The North America ICI declined 4.4 points to finish at 104.3, down from October’s level of 108.7, while the Asian ICI saw a decline of 2.7 points to 96.9,” State Street said.
“European investors bucked the downward trend, however, and the European ICI registered a large increase of 20.7 points to finish at a record high of 141.9,” the statement said.
State Street Associates director Paul O’Connell said the improvement in European confidence “mirrors” what it observed in September.
“An examination of the underlying data indicates that investors in Europe are being selective,” Mr O’Connell said.
“While there are strong inflows into UK equities, there is less enthusiasm to allocate to equities in other regions. Accordingly, some portion of the recent increase may well turn out to be transitory,” he said.
State Street Global Exchange's chief innovation officer and head of research and advisory services, Jessica Donohue, added that increases in market volatility seen in October have “tempered some of the enthusiasm” that North American investors have for risky assets.
“While the major equity indices have recovered from their recent dive and again are at all-time highs, there is a renewed appreciation for the fragility of growth outside the US, and the risk that deflation represents,” Ms Donohue said.
