The State Street Global Investor Confidence Index increased to 107.4 in February, up 4.4 points from January’s revised reading of 103.0.
North American and Asian investors expressed a renewed appetite for risk, with the North American ICI increasing by 6.1 points to 104.4 and Asian ICI rising by 7.8 points to 108.5. Meanwhile, the European ICI declined by 12.9 points to 100.6.
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 month of February was far from boring. Global markets witnessed inflation concerns and growing fears about the pace and degree of rising rates. However, it appears that the return of market volatility did not suppress institutional investors’ risk-seeking appetite,” says Kenneth Froot.
“While investors in aggregate showed resilience in the face of increased market volatility, the divergence in regional performance is interesting. The market gyrations were led by the US but it appears that this impacted European investors more than those in North America and Asia. This divergence is certainly notable and worth watching in the months ahead,” says Lee Ferridge, senior managing director and head of Multi-Asset Strategy, The Americas, State Street Global Markets.