Investor confidence drops 8.3 points
An eventful summer and poorer than expected earnings spooked US investors as the global investor confidence index (ICI) dropped 8.3 points to 89.7 in August, according to the latest State Street ICI.
The North American sentiment fell 10.3 points to 89.5, while European sentiment fell 5.6 points, and Asian sentiment fell two points to 106.1.
Co-developer of the index, Kenneth Froot, said poorer than expected earnings took the wind out of US institutional investors' sails and pushed the US ICI deeper into the red.
"As the August ICI reading was taken before Janet Yellen's speech at Jackson Hole, it remains to be seen whether her growing conviction on the case for a rate hike will mark a further round of risk aversion," Froot said.
State Street head of macro strategy, EMEA, Timothy Graf, said the recent "melt-up" in risky asset valuation did not appear to be endorsed by institutional investors.
"The exception to this would be the resilient sentiment we see in Asia, perhaps a reflection of receding fears of a hard landing in China," Graf said.
Recommended for you
Reserve Bank governor Michele Bullock has said the central bank sees private demand picking up over the next year, taking over from public demand.
One of Australia’s largest super funds has acquired an equity stake in the institutional investment advisory firm.
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.
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(%)
