Powered by MOMENTUM MEDIA
subscribe to our newsletter

Investor confidence decreases in November

Declining investor sentiment across Asia has driven a 0.3 point drop in global investor confidence, according to the State Street Global Exchange Investor Confidence Index (ICI).

The ICI measures institutional investor trades to determine changes in risk appetite. A reading of 100 is 'neutral' and indicates that investors are neither increasing nor decreasing their long-term allocations to risky assets.

The Asian ICI saw a 4.6 per cent decrease to settle at 116.1 points, which State Street Global Exchange executive vice president Jessica Donohue said was driven in part by “exacerbated anti-globalisation jitters” following Donald Trump’s election victory.

“Moreover, confidence in Europe further declined to the mid-eighties, a relatively low level, as the UK’s exit from the European Union and Italian political risk remain sources of major concern,” she said of the 2.6 point decrease in the European ICI, which now sits at 86.5.

North America was the only region to see an increase in investor confidence, with the region’s ICI rising 0.1 point to 95.7 points.

Advertisement
Advertisement

ICI developer Kenneth Froot said the global decline in confidence suggested investors are reluctant to embrace market reactions to Mr Trump’s election win, and cautioned a number of upcoming events may also have an impact on confidence.

“It is yet to be seen whether the stress deriving from upcoming events, such as the OPEC meeting in November and the ECB and FOMC meetings in December, will have any additional impact to the risk sentiment before year-end,” he said.

The decline in confidence seen through November comes after two months of consecutive increases in confidence which saw the Asian ICI reach a record high last month.

[Related: Loss of AAA rating bad news for borrowers]

Investor confidence decreases in November

PROMOTED CONTENT


>The ICI measures institutional investor trades to determine changes in risk appetite. A reading of 100 is 'neutral' and indicates that investors are neither increasing nor decreasing their long-term allocations to risky assets.

The Asian ICI saw a 4.6 per cent decrease to settle at 116.1 points, which State Street Global Exchange executive vice president Jessica Donohue said was driven in part by “exacerbated anti-globalisation jitters” following Donald Trump’s election victory.

“Moreover, confidence in Europe further declined to the mid-eighties, a relatively low level, as the UK’s exit from the European Union and Italian political risk remain sources of major concern,” she said of the 2.6 point decrease in the European ICI, which now sits at 86.5.

North America was the only region to see an increase in investor confidence, with the region’s ICI rising 0.1 point to 95.7 points.

ICI developer Kenneth Froot said the global decline in confidence suggested investors are reluctant to embrace market reactions to Mr Trump’s election win, and cautioned a number of upcoming events may also have an impact on confidence.

“It is yet to be seen whether the stress deriving from upcoming events, such as the OPEC meeting in November and the ECB and FOMC meetings in December, will have any additional impact to the risk sentiment before year-end,” he said.

The decline in confidence seen through November comes after two months of consecutive increases in confidence which saw the Asian ICI reach a record high last month.

[Related: Loss of AAA rating bad news for borrowers]

Investor confidence decreases in November
mortgagebusiness

Latest News

The digital property settlements platform has appointed independent company directors to its board as it expects to begin trading on the ASX...

A report has called for a royal commission and the Reserve Bank to address soaring house prices, warning that the Australian property market...

Auction volumes were lower last week amid ongoing lockdown restrictions in Melbourne and a long weekend in several states and territories, a...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.