Investor confidence continues to strengthen

30 July 2009
| By Mike |

Institutional investor sentiment is continuing to improve, particularly in North America and Europe, according to the latest State Street Investor Confidence Index.

The index rose by 3.6 points to 119.4 in July, with confidence improving across all regions, particularly North America, where it rose from 113.8 to 120.5; in Europe it rose from 95.9 to 104.6.

Confidence also improved in Asia but by a more modest 1.9 points to 94.2.

Commenting on the latest Index, Harvard University professor Ken Froot said the results strongly reflected investor strategies increasingly designed with a view that the global recession would wane more rapidly than many had feared.

“Investors are now adding risk to their portfolios at an impressive rate, faster than we have seen in several years,” he said.

The co-author of the index, State Street Associates director Paul O’Connell, said European confidence had been much stronger in July, partly because of concerns around the US seeming to abate but also because the contagion that might have brought down their own financial institutions seemed to be dissipating.

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