Bringing you live news and features since 2006 

Ken Froot

Investor confidence down by 3.4 points in October, says State Street

RELATED TOPICS​

The State Street Global Investor Confidence Index decreased to 84.4 in October, down 3.4 points from September’s revised reading of 87.8.

Confidence among European investors waned, with the European ICI decreasing from 100.2 to 90.9. The North American ICI declined by 2.6 points to 81.8. Meanwhile, the Asia ICI dropped 0.3 points to 99.6.
 
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 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.
 
 “As major stock indices were hitting record highs near summer’s end, there were signs that institutional investors were reducing risk exposure. As we’ve progressed into fall, equities have declined further as the VIX has doubled. In the US, this month’s sell-off erased all 2018 year-to-date equity market gains. And amid concerns about high valuations and whether earnings may have peaked, some market participants seem to be anxious over a prolonged period of risk aversion,” says Kenneth Froot.
 
“The sharp downgrade our Investor Confidence Index recorded in September was one of the few early warning signs of the ensuing market turbulence that has followed. Confidence has fallen further in October and is more widespread, especially in Europe where not only are political risks rising, but growth is disappointing too.”
 
“The main difference this month is that the Investor Confidence Index is no longer alone in pointing to potential vulnerabilities; business and consumer confidence are also beginning to wobble too,” says Michael Metcalfe, senior managing director and head of Global Macro Strategy, State Street Global Markets.
 
 

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
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