Market confidence weakened again in July

BOSTON (dpa-AFX) – According to State Street Bank, confidence in the stock markets eased in July. Confidence has weakened in Europe, North America and Asia, the US company said Thursday in Boston. The Global Investor Confidence Index (ICI) fell 2.4 points from the previous month to 84.9 points. The barometer had risen between April and June.

“The fact that investor confidence has stumbled somewhat is remarkable not only because it flies in the face of new highs in the prices of some risky assets, but also because confidence has declined in all three regions, although ‘at different levels, “said Michael. Metcalfe, Head of Global Macroeconomic Strategy, State Street Global Markets. The fact that trust has fallen the most in the Asia-Pacific region may be a testament to the political impetus that will come from the region.

State Street Associates expert Kenneth Froot said the surge in investor confidence last month was short-lived. In July, investors were risk-averse again, and although US stocks hit record highs, global markets did not join in the enthusiasm. “To mitigate the impact on global growth and profits, central banks in developed markets are taking a defensive stance. Despite US-China trade talks, uncertainty over supply chain disruption and Brexit appears to persist. . “

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.

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