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Investor confidence continues climb in December
Global institutional investor confidence continued its climb in December despite a large drop in European confidence, according to the State Street Global Markets Investor Confidence Index, which quantifies investor confidence based on their allocation to equities.
After a huge jump in November that reversed a three-month slide, global confidence rose eight points to 104.4 in December. The rise came on the back of an increase in North America of 7.7 points to 103.1 and a 7.4 jump in Asian confidence to 102.9, according to the index.
“Clearly, the scenario for moderated world growth with recovery in the US has increasingly gained traction,” said index co-developer professor Kenneth Froot of Harvard University.
“Confidence in both North America and Asia has now edged above the neutral level of 100, after a relatively weak mid-2010.”
Paul O’Connell of State Street Associates, who also co-developed the index, said the decline in Europe showed that the region’s investors remained jittery in the face of intra-European turmoil.
“We went quickly from a regime of concern around the euro and the liquidity of some of the smaller countries’ debts to a regime where those concerns were ignored. And now we have come full circle: European investors are back again worrying that high sovereign indebtedness may prove destabilising for the region,” O’Connell said.
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