Surveys
European Investors Push Global Confidence Higher; America Lags - State Street

The impeachment furore in the US and Brexit and related uncertainties have dragged on US sentiment, while the European mood actually rose in November.
Investors appeared to cheer up in November, based on a
reading of their buying and selling activity compiled by State
Street Global Markets released yesterday.
The State Street Investor Confidence Index® rose to 80.9, up by
1.7 points from October’s revised reading of 79.2. The increase
in sentiment was driven by a 1.1 point rise in the European ICI
to 133.9. The North American ICI remained steady at 67.7, and the
Asian ICI dipped by 0.1 point to 85.6.
The Investor Confidence Index was developed by Kenneth Froot and
Paul O’Connell at State Street Associates, State Street Global
Markets’ research and advisory services business. It measures
investor confidence or risk appetite quantitatively by analysing
the actual buying and selling patterns of institutional
investors. The index assigns a precise meaning to changes in
investor risk appetite: the greater the percentage allocation to
equities, the higher risk appetite or confidence. 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 differs from survey-based measures in that it
is based on the actual trades, as opposed to opinions, of
institutional investors.
“Global investor confidence inched higher in November, but still
remains well below a neutral reading of 100, adding to the streak
of cautionary investor behaviour since late 2018,” Froot said.
“The stark regional difference between North America and Europe
remained steady, particularly with policy uncertainty surrounding
the impeachment hearings and the trade war continuing to weigh
upon investor sentiment in the US.”