Investor Confidence Declined in November by 0.3 points to 98.9

Decline in Confidence Greatest Among Asian Investors, while Investor Confidence in North America Holds Steady Following US Presidential Election

State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for November 2016.

The Global ICI decreased to 98.9, down 0.3 points from October’s revised reading of 99.2. The decline in sentiment was driven by the 4.6-point decrease in the Asian ICI to 116.1 and the 2.6-point decline in the European ICI to 86.5. The North American ICI rose slightly from 95.6 to 95.7.

The Investor Confidence Index was developed by Kenneth Froot and Paul O’Connell at State Street Associates, State Street Global Exchange’s research and advisory services business. It measures investor confidence or risk appetite quantitatively by analyzing 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.

While global markets continue to decipher the economic and political effects of a Trump presidency on the heels of Brexit, the decline in the Global Index suggests that institutional investors remain reluctant to embrace market reactions,” commented Ken Froot. “It is yet to be seen whether the stress deriving from upcoming events, such as the OPEC meeting in November and the ECB and FOMC meetings in December, will have any additional impact to the risk sentiment before year-end.”

Looking at investor confidence regionally, the setbacks in the ICI this month were felt most strongly by Asian-based institutional investors. Trump’s victory has clearly exacerbated anti-globalization jitters,” commented Jessica Donohue, executive vice president and chief innovation officer, State Street Global Exchange. “Moreover, confidence in Europe further declined to the mid-eighties, a relatively low level, as the UK’s exit from the European Union and Italian political risk remain a source of major concerns.

Author: Dylan Jones

Share This Post On
ATM Africa

15 Comments

  1. Vente Cialis En Pharmacie viagra Zithromax Ear Drops

  2. Prix Du Tadalis Sx Pfizer viagra Dapoxetina Risultati

  3. Viagra Frau Wikipedia viagra Cialis Senza Prescrizione

  4. Buy Cheap Cephalexin cialis Cialis Tempo Di Azione

  5. Amoxicillin Drug Info cialis Viagra Online Pharmacy Reviews

  6. I am commenting to let you know what a exceptional experience my wife’s child enjoyed viewing your webblog. She picked up many details, with the inclusion of what it is like to have an amazing giving mindset to make a myriad of people effortlessly have an understanding of a variety of specialized subject matter. You honestly inspired her. Thank you for offering the important, safe, edifying not to mention easy pointers regarding your subject to Evelyn. Thanks,

Submit a Comment

Your email address will not be published.