GLOBAL - North American investors were again responsible for a fall in investor confidence this month from 82.0 to 74.3, according to State Street.
State Street Investor Confidence Index showed global investor confidence fell by 7.7 points to a level of 74.3, and North American investors were the key drivers of this decline, as their confidence fell from 90.4 to its second lowest reading ever of 78.9.
The results were similar to the results of the investor confidence index for September 2007 which found that confidence fell by 7.5 points to a level of 92.1, with North American institutional investors responsible for a large portion of this shift, as their confidence declined from 117.1 to 106.0.
State Street said in other regions, risk appetitive remained broadly unchanged, with European investors recording a small decline of 0.9 points to 84.0, and Asian investors recording a small increase of 0.8 points to 86.9.
Ken Froot, professor at Harvard University, said: “While institutional investors were happy to provide liquidity to other market participants during the market turmoil of August, they have now decided that the risks to the underlying economy are much greater than before, and have reduced their allocations to risky assets with purpose.”
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