Investor confidence plummets headed by Europe

29 January 2015
| By Priya |
image
image
expand image

A large drop in European investor sentiment has seen global investor confidence plummet according to the latest results from State Street's Investor Confidence Index (ICI).

The global ICI decreased 5.5 points from December's revised 112.2 to 106.7, with European ICI for January falling furthest, from 5.7 points to 113.9 from December's revised reading of 119.6.

In North America, the ICI fell by 1.1 points to 101.8, while in Asia the ICI also fell by 1.1 points to 99.6.

State Street Associates ICI developer Kenneth Froot attributed global deflationary fears and political instability in Europe for the decline in sentiment, and suggested focus will now move to the US Federal Reserve

"Given soft inflation and retail sales in the US, all eyes will be focused on the Federal Reserve on Wednesday to see if the FOMC stays on track to raise rates in Q2." Froot said.

State Street Global Exchange executive vice president Jessica Donohue said there were possible changes in investor sentiment with involvement from the ECB

"It will be interesting to see whether recent sovereign quantitative easing by the ECB will offset rising political uncertainty in the Eurozone and lead to a stabilisation in sentiment." she concluded.

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

Westpac has delayed its rate cut forecast, aligning with its peer NAB’s outlook on the likely trajectory for the Reserve Bank of Australia’s cash rate....

9 hours 57 minutes ago

The government’s adjustment to the Future Fund’s mandate could set a dangerous precedent, warns an economist, raising concerns that it may pave the way for problematic fu...

9 hours 16 minutes ago

The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remain...

11 hours 20 minutes ago