Investor confidence down 9.2 points in July
The State Street Investor Confidence Index (ICI) for July 2020 decreased to 84.8 in July, dropping 9.2 points from June’s revised reading of 94.0.
The North American ICI, down 9.1 points to 76.7, and Asian ICI, down 13.7 points to 86.7, showed the largest declines. The European ICI also fell, albeit by a much smaller magnitude, dropping to 117.8 from 119.9.
“Risk appetite pulled back this month after reaching the multiyear highs that were recorded in June, although this still makes July the second strongest showing for the ICI in a year,” says Marvin Loh, senior macro strategist, State Street Global Markets. “While economies continued to open, the mounting number of virus cases in the US and across various emerging markets tempered last month’s positive momentum. The European ICI fell the least, as the virus remains more contained than other parts of the world. Interestingly, sentiment in Asia also deteriorated even though the region was the first to emerge from lockdown, as a prolonged economic recovery may now be impacting investor outlook.”