Market Research

Investor Confidence Falls In September - State Street Global Markets Report

Devina Shah London 30 September 2010

Investor Confidence Falls In September - State Street Global Markets Report

Global investor confidence has fallen four points for September 2010 to 88.0 from August’s revised reading of 92.0 according to the latest results from the State Street Investor Confidence Index.

The report is by State Street Global Markets, the investment research and trading arm of State Street.

The sharpest drop in confidence was registered in North America, which fell 7.3 points from 95.2 in August to 87.9 in September. There was also a slight decrease among European investors with investor confidence dropping 1.2 points from 98.4 in August to 97.2 in September. However, Asian investors’ confidence rose 4.4 points from 103.5 to 107.9.

“This month’s decline in global investor confidence is somewhat surprising, in light of the meaningful rally in risky assets since the last data release… Looking at the numbers more closely, however, we see that the decline is driven largely by North American investors; elsewhere we see a much more upbeat mood. One underlying driver here is the persistent softness observed in the US economy over the summer, which contrasts with the resilience of markets elsewhere such as Australia, Canada, New Zealand and Sweden,” said Ken Froot, Harvard University professor and one of the developers of the research.

The State Street Investor Confidence Index was developed through State Street Global Markets’ research partnership, State Street Associates, Froot and Paul O’Connell. The State Street Investor Confidence Index measures investor confidence on a quantitative basis by analysing the actual buying and selling patterns of institutional investors.

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