BOSTON (dpa-AFX) – Investor confidence rose only slightly in September, according to a study. Global investor confidence as determined by State Street Bank – shown in the investor confidence index – recovered only 3.3 to 80.1 points from August. Looking at individual regions, sentiment in Europe has improved, while investors in North America and Asia have become even more pessimistic.
“Global investor confidence rebounded slightly in September as central banks stepped up monetary easing efforts and hopes for a truce in the trade war rebounded,” said Michael Metcalfe, chief macro strategist -Global strategy at State Street Global Markets, according to a Thursday. press release issued. “But that’s no reason to burst into enthusiasm.” The index is still only slightly above its early 2019 level and remains well below the crucial value of 100, which, if broken, would indicate investors were increasing their risky assets. Like purchasing managers in the industry, investors have remained cautious, albeit a little less this month.
“The huge increase in European investor confidence is mainly due to the return to British assets,” added Kenneth Froot of State Street Associates. Institutional investors appeared to believe that the UK’s leading index, the FTSE 100 offer a short-term buying opportunity after the recent price drop.
The Investor Confidence Index quantitatively measures investor confidence or risk tolerance by examining the actual buying and selling behavior of institutional investors. The index assigns precise meaning to changes in investors’ risk appetite: the higher the percentage allocation between individual securities, the greater the risk appetite or confidence. A value of 100 is neutral; it is the level at which investors do not increase or decrease their long-term exposure to high-risk assets.