Investor confidence down in January

28 January 2021
| By Oksana Patron |
image
image
expand image

The State Street Investor Confidence index (ICI) slid 3.8 points to 100.7 in January, driven down by a 7.3 point decline in North American ICI.

At the same time, the European ICI and Asian ICI both increased, with the European ICI rising 7.1 to 94.8 and the Asian ICI rising 3.1 to 115.9, respectively.

Although the investors’ confidence remained globally stable in the first month of the year, with vaccine rollouts and the prospect of additional stimulus in the US having provided additional support, the increases in the number of new COVID-19 cases and uneven vaccination rollouts hindered further gains, according to SSGM’s senior macro strategist, Marvin Loh.

“The decline in confidence in North America stands in contrast with the continued improvements in Asia, which has been buoyed by a more rapid return to economic expansion relative to western countries,” he said.

“The pace and efficacy of vaccine efforts over the coming months will certainly set the tone for investors at the start of this new year.”

The index measures quantitatively investors’ risk appetite and an index reading of 100 is considered neutral and is the level at which 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. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week 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 ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

1 day 14 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 14 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 15 hours ago