|
Laxman Pai, Opalesque Asia: The Global Investor Confidence Index (ICI) decreased to 88.3, down 5.7 points from August's revised reading of 94.0, according to a press release from State Street Global Exchange.
Confidence among North American investors further declined, with the North American ICI decreasing from 92.0 to 84.5. The Asian ICI also decreased by 2.5 points to 100.0. Meanwhile, the European ICI rose by 1.0 points to 101.0.
"Institutional investor skepticism was particularly acute in North America, where elevated stock valuations and rising concerns about a slowdown in corporate earnings growth increased risk aversion," said Kenneth Froot of State Street Global Exchange's research and advisory services business who developed Investor Confidence Index along with Paul O'Connell at State Street Associates.
Furthermore, the escalation of the trade dispute between the US and China seems to have led to a decline in the North American ICI to the levels not seen since 2012, Kenneth added.
The release quoted Michael Metcalfe, senior managing director and head of Global Macro Strategy, State Street Global Markets as saying: "While US equity markets continue to break records, helping measures of business and consumer confidence through, or to, cyclical highs, institutional investors are becoming increasingly cautious."
"Institutional investors have reduced their holdings of risky assets for two months in a row and have taken our investor confi...................... To view our full article Click here
|
RSS
