US investor confidence surges: State Street

US investor confidence surges: State Street

North American investor confidence has increased to 120, up 15 points from February’s rating, says State Street.


According to the March 2015 State Street Investor Confidence Index (ICI), the increase in North American investor sentiment is attributed to short-term interest rate forecasts for 2015 and 2016 by the US Federal Reserve.

“We’ve been in a post-crisis regime characterised by diversification out of international equities and into safer asset classes,” said the ICI's developer, Kenneth Froot.

“However, given the continued liquidity provision from major central banks, institutions appear to be developing renewed appetite for global equities,” Mr Froot said.

In contrast, European investor confidence has once again declined – this time by 1.6 points to 104.4.

State Street Global Exchange's executive vice-president and chief innovative officer, Jessica Donohue, indicated that markets are “concerned” about certain geopolitical trends in Europe.

“Market participants may still be concerned about any fallout from negotiations over Greek reforms,” said Ms Donohue.

Moreover, the ICI found that Asian investor confidence in March fell by four points to 90.3.

“Concerns in China may have led to the decline in the Asia ICI,” Ms Donohue added.

The ICI measures investor confidence and risk appetite by recording the buying and selling habits of institutional investors.

 

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