Investor confidence takes a dive

Global investor confidence fell during May as stock market volatility lingered.

Overall the Global Investor Confidence Index fell 12 points from April to land at 103.5 in May, according to State Street Global Exchange, which produces the data each month.

Appetite for risk had fallen across all regions, with a 10-point fall recorded in Europe. The European index dropped from 111 in April, to 101.5 in May.

The index for North America fell from 113.5 to 104.3 over the same timeframe, and the Asian index went from 112.7 to 103.2.

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

“Institutional investors face a challenging environment with a pick-up in stock market volatility and elevated stock valuations despite strong earnings,” said Kenneth Froot, of State Street’s research and advisory services division.

“The success of Eurosceptics in Italy has shaken investor appetite, while rising trade tensions between China, the EU and the US has escalated global concerns and uncertainty. It will be interesting to see how confidence plays out in the face of these risks.”

©2018 funds europe

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