Investor confidence boosted by European sentiment

8 September 2022
| By Laura Dew |
image
image
expand image

The State Street Global Investor Confidence Index has increased by 5.1 points in August to 107.3, up from 102.2 in the previous month.

This was led by a 20-point jump in Europe and a smaller 2.1-point jump in North America. The Asian index fell by 0.9 points.

Rajeev Bhargava, head of investor behaviour research at State Street, said: “Despite the many potential headwinds, including rising inflation concerns and energy security facing the European economy, interestingly, European investors have moved from a risk averse posture to a more neutral posture over the past month as markets rallied through much of August.

“Even after the selloff over the past week, net flows by European investors have been from developed to emerging market stocks, which has driven up the confidence score. However, it is going to be important to monitor whether the enthusiasm persists given recent heightened volatility in equity markets on the back of increasingly hawkish Fed speak.”

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’ research and advisory services business, in partnership with FDO Partners.

It measured investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.

A reading of 100 would be neutral; it would be the level at which investors were neither increasing nor decreasing their long-term allocations to risky assets.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 3 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The election of Donald Trump as the 47th President of the United States signals a looming era of heightened global inflation, warn local economists....

2 days 13 hours ago

Super funds’ exposure to illiquid assets will need to be closely monitored as mega funds continue to grow larger, an analyst has said....

3 days 12 hours ago

Momentum Media has announced 25 winners across 10 individual and 15 group categories for its brand-new Australian AI Awards....

3 days 13 hours ago