Despite a slump in Asian and European investor confidence, State Street has found global investor confidence has grown over June 2015.
According to State Street’s Global Investor Confidence Index (ICI) – which measures the confidence of institutional investors – confidence has grown to 127, up 5.6 points from its revised reading for May of 129.4.
The growth in investor confidence comes despite a drop in the Asian ICI which fell 10.3 points to 87.6 and the European ICI which dipped 1.2 points to 102.5.
State Street also found confidence among North American investors grew in June, jumping 11.7 points from the previous month to 142.9.
Commenting on the confidence boost among North American investors, State Street Associates director Kenneth Froot attributed the result to a lack of “hawkish sentiment” from the Federal Reserve and a “reduction in guidance for rates at year-end 2016 and 2017”.
“It will be interesting to see how stronger labour markets and core inflation in the US offset concerns over the first rate hike,” he said.
Also commenting, State Street Global Markets senior managing director and head of global macro strategy Michael Metcalfe said the drop in European investor confidence would not enough affect confidence in the US.
“Until 24 June there was little sign of the uncertainty surrounding Greece impacting investor confidence,” he said.
“Although the confidence of investors based in Europe did drop, it do so marginally and not enough to offset a rise in confidence in the US.
“We will need to wait to see next month's reading to see if this was based on misplaced confidence in a resolution to the Greek saga or whether the contagion effects from Greece are indeed less than first feared,” Mr Metcalfe said.
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