The Global Investor Confidence Index increased to 108.7, up 0.9 points from August’s revised reading of 107.8. The increase in Investor confidence was driven by an 11.0 point jump in the Asian ICI to 112.6, and, to a lesser extent, a 0.8 point rise in the North American ICI to 104.7. The European ICI, meanwhile, declined 6.2 points to 97.5.

The Investor Confidence Index was developed 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.

“Investor confidence was stable in September, with the Global ICI posting a marginal gain on the heels of strong signals that the end of the global central bank tightening cycle was nearing a close,” commented Marvin Loh, senior global macro strategist at State Street Global Markets. “There were, nonetheless, mixed regional signals as economic divergence influenced overall investor appetite. North American investors remained risk-seeking as the Fed signalled that a soft landing remains its base case as it projected just one more rate hike this year. In contrast deteriorating economic conditions in Europe prompted a pullback in our Europe ICI back below 100 to its lowest reading of the year. Conversely, additional stimulus efforts from China seem to have brightened the regional readings as the Asia ICI jumped 11 points to its highest reading in almost in almost 3 years.”

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The Global Investor Confidence Index increased to 107.7, up 11.4 points from July’s revised reading of 96.3. The increase in Investor confidence was supported across all regions but was led by a 12.9 point rise in North American ICI to 103.8. Elsewhere, European ICI rose 4.3 points to 103.7 and Asian ICI rose 4.8 points to 102.2.

The Investor Confidence Index was developed 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. “Investor confidence saw its biggest jump in 18 months, with the Global ICI now solidly in risk-seeking territory, as risk appetite improved in every region this month,” commented Marvin Loh, senior global macro strategist at State Street Global Markets. “The improvement was led by North America, which recorded its strongest reading in a year on the heels of falling recessionary concerns. A pair of better than expected CPI prints have also supported the view that a soft landing was possible. While the monthly gain was not as strong in Europe, this regional ICI bounced back above 100, as overall disinflation started to accelerate, with a tenuous economic backdrop holding back further gains.

Asia ICI showed a similar investor dynamic, improving back towards moderate risk appetite, although China’s economic challenges impacted further gains.” The index is released globally at 10 a.m. Eastern time in Boston on the last Wednesday of each month.

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Despite recent market fluctuations, the Global Investor Confidence Index saw an increase to 97.1, up 4.8 points from April’s revised reading of 92.3. The increase was led by a 5.0 point rise in the North American ICI to 99.1 as well as a 1.6 point rise in the Asian ICI to 93.1. The European ICI, however, fell for the third straight month; down 8.7 points to 67.5.

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’s research and advisory services business, in partnership with FDO Partners. 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.

“Investor sentiment improved moderately in May, with the Global ICI rising to 97.1, recapturing much of the weakness reported in the prior month,” commented Marvin Loh, senior macro strategist at State

Street Global Markets. “The gains were led by improvement in the North America ICI, which increased to 99.1 from 95.1 in April, as peak hawkishness contributed to stabilizing sentiment.”

“Investor confidence likely ticked up due to the Fed increasing rates by 50 bps in May, with investors now anticipating a series of comparable increases in the coming meetings, with the neutral rate in focus by year end.

“The same cannot be said for the ECB, which has yet to start its normalization process, as the Europe ICI continues to decline, falling to its lowest level in over 10 years, with inflation and the war weighing heavily on sentiment.

“Rounding out this month’s readings, risk appetite in Asia remained mostly stable as signs of peaking COVID infections and improving mobility contributed to modest gains.”

The index is released globally at 10 a.m. Eastern time in Boston on the last Wednesday of each month.

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