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Laxman Pai, Opalesque Asia: State Street said its Global Investor Confidence Index in August fell to the lowest level in four months in another sign the US-China trade war is weighing on business and sentiment.
The State Street Global Investor Confidence Index (ICI) decreased to 75.9, down 8.7 points from July's revised reading of 84.6. Investor confidence across all regions weakened, with the North American ICI decreasing from 80.3 to 72.5, the European ICI dropped from 98.6 to 89.0, and the Asian ICI fell from 91.8 to 89.2.
The sentiment among institutional investors declined for the third month in a row as uncertainty over monetary policy and trade tensions reduced risk appetite amid concerns over potential downside risks to the economy.
"In August, institutional investor sentiment declined once more against a backdrop of downside risks to the economy, increased political uncertainty in Italy, and the possibility of a hard Brexit," commented Rajeev Bhargava, managing director and head of Investor Behavior Research, State Street Associates.
"Monetary and trade policy uncertainty is reducing risk appetite, and investors are watching for changes in interest rate expectations following this year's Federal Reserve conference in Jackson Hole," he added.
"This month's investor confidence index results reflect investors' growing concerns about the global economic slowdown and widespread declines in global manufacturing as the trade war between the worl...................... To view our full article Click here
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