Investor confidence declines in January

30 January 2020
| By Chris Dastoor |
expand image

Investor confidence declined in January by 3.2 points to 76.5, with the largest fall from European investors, according to the latest results of the State Street Investor Confidence Index (ICI).

The North American ICI fell 3.4 points to 68.2, Europe fell 3.9 points to 105.5, but China rose 4.8 points to 93.9.

Michael Metcalfe, head of global macro strategy at State Street Global Markets, said it’s telling confidence of European investors had continued to fall.

“This is similar to the first round of asset purchases from the European Central Bank (ECB) that the promise of buying has as big – if not bigger – signalling effect for investors than the action of buying itself,” Metcalfe said.

“Meanwhile, the cut-off date for this reading [1 January, 2020] means that the potential impact of the escalated contagion from the Novel Coronavirus on sentiment will not be captured this month.”

The ICI measured investor confidence or risk appetite quantitively by analysing the buying and selling patterns of institutional investors.

The index measures chance in investor risk appetite with the greater the percentage allocation to equities, the higher the risk appetite or confidence, with 100 being neutral.

Read more about:


Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sidebar 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. ...

3 months 4 weeks ago
Kevin Gorman

Super director remuneration ...

4 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 ...

4 months ago

While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their ...

18 hours 51 minutes ago

Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has ...

19 hours ago

HESTA has slammed Woodside’s climate transition action plan, pointing to “significant” gaps....

19 hours ago