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Ken Froot, State Street

Investor Confidence up by one point in July

The State Street Investor Confidence Index (ICI) increased to 101.8 for July 2018, up 1.0 point from June’s revised reading of 100.8.

Confidence among North American investors declined, with the North American ICI decreasing from 104.2 to 103.4. Meanwhile, the European ICI rose by 0.7 points to 91.5 and the Asia ICI increased by 0.5 points to 103.3.
“Despite the recent rebound in equity markets, we haven’t seen significant traction in risk appetite globally over the past couple of months,” says Rajeev Bhargava, managing director and head of Investor Behavior Research at State Street Associates. “It appears that geopolitical uncertainty continues to be a major risk factor on the minds of investors.”
“The regional breakdown shows that North American and Asian investors have tamed their risk appetite from an overly optimistic level, with ICI readings just a few points above the neutral mark. At the same time, European investor sentiment remains anchored in risk-off territory. It is possible that the prospects of escalating trade protectionism, political uncertainty, and lagging earnings growth continue to depress institutional investor sentiment,” says Kenneth Froot (pictured), co-developer of the ICI.

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