Bringing you live news and features since 2006 

State Street Ken Froot

Investor Confidence rises in March by 8.0 points to 114.6

RELATED TOPICS​

State Street’s Global Investor Confidence Index increased to 114.6, in March up 8.0 points from February’s revised reading of 106.6. 

Investors across all regions expressed a renewed appetite for risk, with the North American ICI increasing from 109.4 to 123.6, the European ICI rising from 90.2 to 95.3, and the Asian ICI from 111.5 to 112.2.

The Investor Confidence Index was developed by Kenneth Froot (pictured) and Paul O’Connell at State Street Associates, State Street Global Exchange’s research and advisory services business. 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. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.

“We have seen a rebound in global sentiment in March after one of the worst starts on record,” says Jessica Donohue, executive vice president and chief innovation officer, State Street Global Exchange. “Oil prices have rallied and market volatility has subsided leading to a renewed enthusiasm for risk.”

“The upturn in confidence resulting from rebounding markets was particularly prominent among North American investors,” says Ken Froot. “As the US economy remains on solid footing and continues growing at a moderate pace, risk seeking sentiment was boosted by more than 14 points in March, the sharpest increase in 12 months. It will be interesting to see how the Fed’s cautious stance continues to play into North American investor confidence and investor confidence globally.”

Latest News

BlackRock s iShares an undisputed leader among European ETF issuers pushed further ahead in Q1 with EUR173 billion in trades..
European ETFs raised USD47 8 billion in Q1 a 15 per cent increase compared to the same period in 2023..
LSEG Lipper s March report finds that globally equity ETFs +EUR113 2 billion enjoyed the highest estimated net inflows for..
Morningstar has published a review of the European ETF market for the first quarter 2024 which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs share of the US ETF market rose to 8 5 per cent at...
Kristen Mierzwa, FTSE Russell
Index Investments Group IIG a division within index provider FTSE Russell has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023 with an introductory suite of 11 ETFs seven thematic and four fundamental...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by