Investor confidence declines in January
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.
Recommended for you
Passive investing is reshaping Australian equities, giving rise to a “no information trade” in which large-cap stocks swing sharply despite little or no fresh news.
RBA governor Michele Bullock warns of global trade risks as domestic inflation cools and employment remains near full capacity.
AMP chief economist Shane Oliver says investors should treat both extremes with scepticism after a week of starkly different climate projections.
The federal government’s new 2035 climate target is being billed as a signal to investors that Australia is serious about mobilising capital for the transition to net zero.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
3
DomaCom DFS Mortgage
67.30 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
