North America boosts global investor confidence

Investor confidence rose by four points in July thanks to improved sentiment in North America, according to State Street Global Markets. 

In its monthly Global Investor Confidence Index, the firm said global confidence rose four points to 100.6.  

This was driven by a 9.3 point in the North America confidence index to 105.1 while Europe saw a small rise of 1.8 points to 92.8. However, Asian confidence declined 4.8 points to 87.0. 

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The index tracks investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors with a reading of 100 being neutral. 

Marvin Loh, senior macro strategist at State Street Global Markets, said: “Risk appetite improved in July as the global ICI ticked higher on confidence of continued reopening tailwinds.  

“US investor sentiment reversed all of last month’s weakness with longer-term inflation expectations stabilising despite higher than expected current price readings. Interest rates also fell by their widest margins in over a year, which kept financial conditions supportive of risk assets.  

“In contrast, however, Asian investor confidence retreated to its lowest levels in a year, likely due to the region’s vaccination levels lagging much of the developed markets and growth concerns starting to emerge in China.” 

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