North American institutional investor sentiment jumps

27 July 2017
| By Jassmyn |
image
image
expand image

Strong earnings growth expectations and optimism has turned around North American institutional investor confidence with a 10-point uptick to 112.1 in sentiment, according to State Street Global Exchange.

State Street Global Exchange’s Global Investor Confidence Index (ICI) increased to 108.9, up 7.9 points from June’s revised reading of 101. The European ICI decreased by 4.3 points to 94.2 and the Asian ICI declined by 1.3 points to 96.

State Street Associates managing director and head of investor behaviour research, Rajeev Bhargava, said continued improvements in global economic growth seemed to have ignited institutional investors’ risk appetite.

“Strong earnings growth expectations and optimism grounded in the improving economic outlook have taken precedence over the rising anticipation of reduced central bank balance sheets and a more hawkish tone,” he said.

The index co-developer, Kenneth Froot, said the European ICI remained in risk-off territory.

“With fading political headwinds and a strong tone to the Eurozone corporate earnings data, the ECB's [European Central Bank’s] dovishness came as a surprise. As a result, European market participants continued to express caution,” he said.

“In addition, the buildup of corporate debt in China and concerns about the Trump Administration’s global trade policies may have led to the decline in the Asian ICI.”

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 1 month ago
Kevin Gorman

Super director remuneration ...

1 year 1 month 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 1 month ago

The $74 billion fund has welcomed an experienced CIO to lead its investment strategy....

6 minutes 35 seconds ago

Global X believes the yellow metal could soar as high as US$3,000 this year, with market flows leading the charge....

3 days 23 hours ago

While Australian companies could face starkly different climate-related reporting regimes depending on which way the election swings, a sustainable investment specialist ...

3 days 23 hours ago

TOP PERFORMING FUNDS