Confidence rises but investors cautious about systemic risk

image
image image
expand image

The State Street Global Investor Confidence Index (ICI) continued to rise in April, with an increase of 2.2 points to 83.5 points. 

The index increased from March’s revised reading of 81.3 to 83.5 in April. While investor confidence continued to grow globally, the results varied across the regions.

“Despite relative stability in the US banking sector, institutional investors globally remained cautious in April,” said Marvin Loh, senior global macro strategist at State Street Global Markets.

Although North America’s ICI rose marginally by 1.6 points to 75.5, it maintained the weakest regional reading as investors managed the region’s banking sector uncertainty and tightening monetary policy. 

However, Loh commented: “The April numbers demonstrate a degree of comfort that US bank depositor stress will remain contained and not contribute to broader systemic risk”.

The European ICI decreased by 6.4 points to 111.2 while Asia’s ICI fell by 2.6 points to 89.3. 

“Despite a drop in April, the 112.2 ICI reading for Europe remained at near two-year highs, with this region signalling the strongest level of risk-taking,” Loh said.

Loh attributed the fall in Asian ICI to fading optimism of widespread gains from China’s economic re-opening. 

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets research and advisory services business. 

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. ...

1 year 8 months ago
Kevin Gorman

Super director remuneration ...

1 year 8 months 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 ...

1 year 8 months ago

The latest superannuation performance test results have shown improvements, but four in 10 trustee-directed products continue to exhibit “significant investment underperf...

2 days 5 hours ago

A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts....

3 days 4 hours ago

The corporate regulator has launched civil proceedings against Equity Trustees over its inclusion of the Shield Master Fund on super platforms it hosted, but other truste...

3 days 5 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3