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Investor confidence drops slightly

ConfidenceAn index of global investor confidence dropped one point in November to 97.1.

The minor decline in the State Street Investor Confidence Index was attributed to a 12.0 point drop in the European investor confidence index to 81.0.

By contrast, the North American index rose 3.7 points to 102.6 and the Asian index increased by 1.0 point to 97.5.

The index measures investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors.

It differs from survey-based measures in that it is based on actual trades, as opposed to the opinions or sentiments, of institutional investors.

“While tax reform prospects likely helped boost investor confidence in the US, rising political uncertainty and worries over tighter monetary conditions likely drove down sentiment in Europe,” said Rajeev Bhargava, managing director and head of investor behaviour research at State Street Associates.

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