Global investor confidence rises in May from low base

Global investor confidence rose to 79.5 points during May, up 6.6 points from April, yet overall sentiment towards markets remained low.

While European and North American investor confidence increased to 76.7 and 92.5 points respectively, in Asia it dropped by 4.2 points to 88.4, according to the State Street Investor Confidence Index.

“Trade war and Brexit-related uncertainty dominated this month’s headlines. Institutional investors have been wary, and with potential supply-chain disruptions and concerns about rising protectionism it is understandable that sentiment remains anchored in the risk-averse territory,” said Kenneth Froot, one of the report’s authors.

“However, while the low level of the index points to risk-off behaviour over the last few months, the solid uptick this month indicates some investors may be moving back in to buy the dip.”

The index measures confidence or risk appetite quantitatively by analysing buying and selling patterns of institutional investors, rather than using opinion surveys.

A reading of 100 is neutral and indicates a level at which investors are neither increasing nor decreasing their long-term allocations to risky assets.

©2019 funds europe

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