GLOBAL - Institutional investor confidence in the US was at an 18 month low, with confidence in Asia also down and the European outlook barely improved over last month, according to State Street Global Markets.
Globally, the index declined 6.1 points in October, from 88.7 to 82.6, with the greatest fall in the US, where confidence fell to 89.2 points from 102.8 last month.
This is the lowest level the US confidence index has been at since February 2006.
Asian confidence fell 1.7 points while European investors were marginally more optimistic, with the index rising 0.7 points.
Ken Froot of Harvard University commented: “Following the see-saw behaviour of late summer, which saw institutional investors providing liquidity in August, before taking profit in September, this month’s confidence reading reflects a more dubious stance.”
The figures, released by State Street’s Investor Confidence Index, were based on an analysis of institutional investor activity on global equities markets.
The index was calculated by the amount of a portfolio investors are willing to hold in equities, with higher allocations equating to a greater appetite for risk, or confidence.
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