Europe’s confidence lowest since 2013

27 August 2015
| By Jassmyn |
image
image
expand image

The global investor confidence dropped 4.5 points in August thanks to investors based in Europe, according to State Street Global Exchange.

State Street Investor Confidence Index (ICI) found the European ICI fell 6.8 points and was the largest contributor to the global ICI drop to 108.7.

Despite uncertainty in the Chinese market, the Asia ICI rose by 3.5 points, while the North American ICI fell 0.8 points.

State Street's senior managing director and head of global macro strategy, Michael Metcalfe, said "the cut off to calculate this month's investor confidence index reading was August 19th, so we have only captured some reaction to China's decision to change its FX [foreign exchange] regime."

"The fall in this month's index that we can see so far was driven by investors based in Europe, where confidence has fallen below the key 100 threshold for the first time since August 2013."

Commenting on the results, the ICI's co-developer Kenneth Froot said the cautious tone in August was on the back of the devaluation of the renminbi and the continued turmoil in commodities.

"How this effects the Fed is yet to be seen; certainly the deteriorating overhang of global growth and the pull back in emerging markets makes a decision to raise rates increasingly precarious," he said.

A reading of 100 is neutral where investors are neither increasing nor decreasing their long-term allocations to risky assets.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 1 month ago
Kevin Gorman

Super director remuneration ...

1 year 1 month ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 1 month ago

While the controversial measures have received little support in the Senate, the think tank has said Division 296 would “make the nation’s super system fairer”....

15 hours 34 minutes ago

In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super...

15 hours 40 minutes ago

With the merger between Mine Super and TWUSuper in its late stages, the head of the soon-to-be combined fund is the latest to join ASFA’s board. ...

16 hours ago

TOP PERFORMING FUNDS