State Street Associates: Investor Confidence Decreased in April
State Street Associates: Investor Confidence Decreased in April
State Street Global Markets released the results of the State Street Investor Confidence Index® (ICI) for April 2020. The Global Investor Confidence Index decreased to 73.0, down 0.7 points from March’s revised reading of 73.7. The Asian ICI plummeted to 18.3 points, falling to 80.0 from 98.3. Meanwhile, North American ICI inched upward by 1.2 points to 68.0 and the European ICI rose from 95.5 to 102.8.
'Investor confidence dipped slightly in April, largely driven by weaker sentiment for Asia,' commented Rajeev Bhargava, head of Investor Behavior Research, State Street Associates. 'Despite an end of the lockdown in China, the Asia ICI fell to its lowest level since 2005, possibly a reflection of weaker economic data regionally and renewed concerns over the regions ability to sustainably exit lockdown as cases resurface in previously locked-down countries. In contrast, however, US and Europe showed stability in investor appetite this month with Europe actually seeing a material rise in investor confidence. The unprecedented amount of stimulus central banks have injected into markets as well as signs of a slowing in new COVID cases locally seem to have had a stabilizing effect on risk behavior.'