Investor confidence drops in June: State Street

Investor confidence drops in June: State Street

Institutional investor confidence edged down in June as sentiment remains “rather subdued” across the globe, according to State Street.


The State Street Global Investor Confidence Index declined slightly in June by 1.6 points to 101.

A reading of 100 on the index is 'neutral', which means that on a global basis institutional investors remain in 'risk on' territory.

The June reading showed that confidence among both Asian and North American investors declined, with the Asian index down 4.4 points to 97.1, and the North American reading falling 2 points to 102.2.

The European index, on the other hand, increased by 1.7 points from 96.8 to 98.5.

State Street Associates' Kenneth Froot, who developed the index with his colleague Paul O'Connell, said the optimism of May among investors did not continue in June.

"Even in North America, while the index remains in a ‘risk-on’ territory, the decline in investor confidence was likely driven by intensified concerns around overvaluation, oil prices and the US energy policy, as the [US Federal Reserve] delivered its second rate hike in 2017," Mr Froot said.

State Street global markets head of macro strategy Timothy Graf said, "Sentiment remains rather subdued across regions as investors do not appear to enthusiastically endorse the steady climb of risky asset valuations.

"The neutral read on investor behavior disproves the notion of market complacency in the face of many latent risks."

 

Investor confidence drops in June: State Street
investordaily image
ID logo
promoted stories

Appointments

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Brad Fox

Former AFA CEO appointed to boutique board

Staff Reporter

Analysis

investordaily image

Warning lights flashing on Aussie equities

Roy Maslen

investordaily image

What’s in store for the economy in 2018?

Frank Uhlenbruch

ST Wong

Busting common passive investing myths

ST Wong