State Street: Rise in Global Investor Confidence

State Street: Rise in Global Investor Confidence

Aandelen
Beursvloer (01)

State Street Global Markets released the results of the State Street Investor Confidence Index® (ICI) for May 2021. The Global Investor Confidence Index increased to 97.9, up 5.4 points from April’s revised reading of 92.5. The rise in investor confidence was driven by a 6.0 point increase in North American Investor Confidence to 97.8. Asian Investor Confidence also increased substantially, rising 9.0 points to 100.8. The European ICI, however, dropped 1.2 points to 93.0.

“Investor risk appetite improved by its largest margin of the year in May, buoyed largely by reopening optimism on the heels of broader vaccination access, particularly in advanced economies,” commented Marvin Loh, senior macro strategist at State Street Global Markets. “Rising yields, which had generated investor concern earlier this year, have been generally stable recently, contributing to positive gains in investor confidence in both North America, as well as Asia, even in spite of ongoing issues with vaccine rollouts in Asian countries. In contrast, European investors saw a slight contraction in confidence this month as gains on the vaccination front were met with slightly higher yields.”

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.