Global Investor Confidence jumps to 94.3 in June as economies reopen

Global investor confidence has risen to 94.3 in June, jumping 21.3 points from April’s revised reading of 73, according to the latest figures from State Street Global Markets’ Global Investor Confidence Index. 

A reading of 100 is neutral, and represents the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets.

“Risk appetite saw a strong rebound in June. The Global ICI rose to 94.3, its highest level in almost two years, buoyed by higher sentiment across all regions,” comments Rajeev Bhargava, head of Investor Behavior Research, State Street Associates. 

North American ICI led the way, rising 18.8 points to 86.2, followed closely by the Asian ICI which was up 18.6 points to 100.0. The European ICI was up double digits as well, rising to 119.7 from 108.5.

“Unprecedented action by central banks combined with the reopening of major economies around the globe likely drove a more optimistic tone of investors. However, it will be important to see whether the positive momentum in sentiment endures as signs of a second wave in Covid infections drive volatility in asset markets,” adds Bhargava.

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’ research and advisory services business, in partnership with FDO Partners. 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. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.