Confidence Rises Marginally

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    Globally, investor confidence was marginally up in the ‘State Street Investor Confidence Index’ (ICI) for July 2012. The Global ICI rose by 0.7 points from June’s reading of 93.3 to reach 94. Confidence among both North American and European investors ticked downwards, while sentiment among Asian investors was slightly improved. The North American ICI declined 0.6 points from June’s revised reading of 93.7 to settle at 93.1, while the European ICI fell 0.5 points from June’s revised reading of 102.2 to reach 101.7. The Asian ICI was up 0.8 points from June’s revised figure of 90.2 to finish at 91. “The message being sent by institutional investors this month is one of caution,” says Harvard University professor Kenneth Froot who co-developed the index. “The pick up in equity buying that we noted last month proved short-lived and flows had turned negative by the end of our July sample. It should be noted that the sample ends just before the latest round of policy pronouncements from European policy-makers. As such, it remains to be seen whether these policy moves will have a meaningful impact on risk appetite.”