Global investor confidence rises but North Americans remain pessimistic
Global investor confidence has risen by 1.3 points in June to 89.7. European (up 5.4 points) and Asian (up 1.7 points) confidence rose in June, according to the State Street Investor Confidence Index.
North Americans continued to be pessimistic, with confidence levels falling by 6.3 points to 92.2 compared with May’s 98.5
Question marks over the state of the US job market and overall US aggregate demand may have slowed the pace of economic recovery, according to Harvard University professor Ken Froot who together with Paul O’Connell from State Street Associates created the index.
There is “some evidence of stabilisation in risk appetite outside North America,” added O’Connell.
“A look at the underlying data confirms the strongest regional flows are into emerging markets, with the exception of emerging Eastern Europe,” he noted.
Globally, investor confidence has been slowly rising October 2008, after it hit its all time low after the collapse Lehman. Following a slight decrease in April and May 2010, the global increases give an optimistic tinge to the overall sentiment.
The State Street Investor Confidence Index measures investor confidence on a quantitative basis by analysing the actual buying and selling patterns of institutional investors. The index gives a precise meaning to changes in investor risk appetite, the greater the percentage allocation to equities, the high the risk appetite or confidence.
The Index shows the sentiment of institutional investors as it is based on actual trades rather than survey data.
Source: http://www.hedgefundsreview.com/hedge-funds-review/news/1720034/global-investor-confidence-rises-north-americans-remain-pessimistic
Similar Posts:
- Zew Disappoints, but Market Remains Robust
- Forex Trading Strategy For Canada Employment Change 07/09/10
- USD Weak Ahead Of US Interest Rate Meeting
- Yen Weakens Against the Majors
- Forex Plan & Video For US Core Retail Sales 07/14/10
