Uncertainty surrounding global growth has contributed to a decline in investor confidence in July, down 12.5 points to 114.6, says State Street.
According to the July 2015 State Street Global Confidence Index (ICI), confidence among North American investors decreased, with the region’s ICI falling 20.6 points.
ICI developer Kenneth Froot said: “A weaker earnings season in the US and greater uncertainty on the global growth front were the likely factors driving the sharp decline in North American investor sentiment in July.”
The fall in North American ICI is a step backward from May's substantial eight point climb.
“However, despite this pull back in sentiment, it is important to note that investors remain largely optimistic as the North American ICI remains still well above [the] 100 level,” Mr Froot said.
State Street Global Exchange executive vice president and chief innovation officer, Jessica Donohue, said uncertainty in both China and Greece pulled down North American ICI.
“The rollercoaster ride across China’s equity markets and the absence of a definitive Greek bail-out agreement has certainly weighed heavily on risk appetite,” said Ms Donohue.
“While the aggressive response of the Chinese authorities to calm investors’ nerves seems to have had a net positive effect on sentiment within the region in the month to 22 July, the continued volatility in equity markets highlights how temporary such measures can be,” she said.
European ICI fell 2.1 points to 100.4 in July while Asian ICI rose by 2.6 points to 89.5.
AMP could face further risks according to analysts at Morgan Stanley, with the negative flow trends across the wealth giant expected to cont...
The wealth and trustee arm of MyState, TPT Wealth, has seen a slight increase of 1 per cent during the first quarter of financial year 2021,...