Investors Cheered Up In February - State Street

Editorial Staff, 5 March 2019


Sentiment rose in February, according to the buy/sell barometer issued by the US firm.

Investors grew more confident about markets in February this year as revealed by their actual buying and selling behaviour, a barometer issued by State Street showed.

The Global Investor Confidence Index increased to 70.9, up by 1.5 points from January’s revised reading of 69.4, State Street Global Exchange, part of State Street, the US firm, said.

Confidence among North American investors showed a slight uptick, with the North American ICI rising from 65.7 to 66.3. The European ICI rose by 6.1 points to 96.0 and the Asia ICI decreased by 3.5 points to 96.4.

A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. The index was developed by Kenneth Froot and Paul O’Connell at State Street Associates.

“Institutional investors remained cautious in February, continuing to show hesitance toward riskier assets,” Froot said. “With lingering growth and trade policy uncertainty, it appears that the more dovish Fed and the hopes for progress on the US-China trade front are not enough to tip the scales – related to risk aversion.”

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