Global investment confidence decreased 2.3 points in October, driven by a reduction in both North American and European confidence, says State Street.
According to the October 2015 State Street Global Confidence Index (ICI), global ICI decreased to 114.3, down 2.3 points from September’s reading of 116.6.
North American ICI fell from 133.2 to 125.5 with European ICI also falling, down 5.8 points to 89.9.
State Street Global head of macro strategy Timothy Graf said: “The drop in European investor sentiment is a worrying sign in light of some of the fundamental data we have seen across the currency union of late.”
“With inflation not recovering in the eurozone, recent central bank hints at further easing may need to become more concrete before we see a significant increase in confidence.”
While confidence fell across the majority of regions in October, Asia ICI rose by 13.2 points to 111.0.
ICI developer Kenneth Froot said this is the first time Asian investment confidence has ascended above the 100 (neutral) threshold this year.
“The increasingly accommodative stance taken by policymakers globally and hopes for state-owned enterprise reforms in China have had a large impact on Asian investors, boosting risk appetite by 13.2 points,” Mr Froot said.
According to Mr Froot, Asia’s revised reading suggests a “risk on” environment is developing in the region.