Improving confidence in North America and Asia has seen the State Street Global Investor Confidence Index rise during September.
The index result, released by State Street Global Exchange, measures investor confidence and risk appetite by analysing the actual buying and selling patterns of institutional investors.
The September result showed that the index rose 7.2 points to 116.1 with the improvement in sentiment driven by an increase in the North American index from 120.6 to 133.2.
It also showed that confidence among Asian investors rose by 5.4 points to 97.8, while in Europe the index also increased to 95.7, up 2.2 points.
Commenting on the outcome, State Street Associates’ Ken Froot said that in September all eyes had been focused on whether the US Federal Reserve would lift rates.
“In the current environment of elevated tail risk, indications that the Fed is embarking upon a more shallow rate hiking cycle should help both alleviate market volatility and stabilise the global growth outlook, and this has been reflected in sentiment more broadly this month,” he said.
According to State Street Global Exchange executive vice president and chief innovation officer, Jessica Donohue emerging markets are grappling with a range of headwinds constraining their growth.
“A delayed rate hike extends the loose monetary policy environment, easing concerns over EM,” she said.
