European and Asian institutional investor sentiment softens

Institutional investors in Europe and Asia have shown a distinct difference in sentiment to those of their North American counterparts, according to the latest State Street Investor Confidence Index.

The index, released this week, declined 0.3 points to 93.8 driven by a seven point decrease in the European to 92.9 along with the 0.4 point decline in the Asian index to 108.1.

The index analysis pointed to the fact that, by contrast, the North American index rose two points from 87.6 to 89.6.

Related News:

Commenting on the outcome, State Street's Ken Froot said stretched valuations and geopolitical risk did not support global sentiment at the start of 2017.

"While financial markets crave political stability, political change is disruptive," he said.

"With the new US Administration taking office mid-month, worries about trade policies and a stronger dollar have taken centre stage in 2017."

State Street Associates managing director and head of investor behaviour research, Rajeev Bhargava said it was noteworthy that after a more constructive vote of confidence by European investors in December, sentiment had moderated somewhat as the New Year started.

"Concerns surrounding the impending French and Dutch elections as well as a hard Brexit may have fuelled this cautious tone," he said.

Related Content

Will SCT funding be adequate to close its workload?

The Superannuation Complaints Tribunal (SCT) may not have adequate resourcing to close out all the complaints currently before it to meet the deadline...more

The confusion of comparing apples with oranges

Despite all the talk, superannuation funds are still not easily comparable and little progress has been made in fixing the issue. This is part three o...more

Super funds gain 0.5 per cent in May

Superannuation funds are on track to producing strong double-digit returns for the financial year after the 11 months of the financial year returned 1...more



Add new comment