Investor confidence begins to improve: State Street

By Taylee Lewis

— 1 minute read

28 May 2015

Global investor confidence increased seven points in May to 120.8, with both North America and Asia showing signs of improvement, says State Street.

According to the May 2015 State Street Global Investor Confidence Index (ICI) – which measures the confidence and risk appetite of institutional investors – North American ICI was recorded at 129.4, an eight point recovery from April’s reading of 121.4.

ICI developer Kenneth Froot said: “A lower dollar, stabilising energy prices, and reduced expectations of an imminent rate hike provided tail winds to North America sentiment.”

“Investors must now wait and see whether a rebound in second quarter growth will lead to more hawkish statements from the Federal Reserve.”

Asian ICI also rose 7.4 points to 98.6, while European ICI fell 5.5 points to 103.8, the index found.

State Street Global Exchange vice president and chief innovative officer, Jessica Donohue, said macroeconomic concerns contributed to a fall in European ICI.

“In Europe, a rising euro, increased sovereign yields, and the continued Greek funding drama helped contribute to the decline in European confidence by 5.5 points,” Ms Donohue said.

“However, the front-loading of sovereign bond purchases by the ECB before the summer months may help reverse recent trends.

“Meanwhile, in Asia, policy manoeuvres in China helped boost investor confidence by 7.4 points,” she said.