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Investor confidence drops in April: State Street

Investor confidence drops in April: State Street

Reporter

Global investor confidence dropped by 5.7 points in April, driven by a reduction in North American confidence, says State Street.

According to the April 2016 State Street Global Investor Confidence Index (ICI), global investor confidence decreased to 109.1, down 5.7 points from March’s revised reading of 114.8.

The North American ICI fell from 123.7 to 115.0, with the Asian ICI decreasing by 4.2 points to 107.8. The European ICI's decrease was the smallest, from 95.8 to 95.3.

State Street Global Markets' head of global macro strategy, Michael Metcalfe, said: “We observed decreases in sentiment in each of our three regions, the most modest of which occurred in Europe where investors were already more pessimistic than elsewhere.

“The implication is that the aggressive easing by the European central bank in March was sufficient to stabilise but not sufficient enough to boost sentiment in the region.”

ICI developer Kenneth Froot said global sentiment fell moderately in April as investors considered stretched valuations following the recent rebound in equities and commodities.

“Disappointing corporate guidance has been counterbalanced by increased easing expectations out of the European Central Bank and Bank of Japan. Absent further central bank action, investors will look to improving fundamentals to sustain a rally going forward,” he said.

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Investor confidence drops in April: State Street
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