28/09/2011
Investor confidence index up in September
State Street’s Global Investor Confidence increased slightly to 89.9 in September, up from August’s revised reading of 88.1. The gains in the index originated in Europe and Asia. The European Investor Confidence Index gained 5.6 points to reach 95.7, up from August’s revised reading of 90.1, while the Asian Investor Confidence Index behaved in a similar fashion, rising 5.5 points to reach 100.7. Among North American investors, sentiment declined slightly to 85.1, down 1.1 points from August’s revised level of 86.2. “On the face of it, it may seem surprising to measure an increase in Global Investor Confidence in a month in which equity volatility has increased substantially,” commented Ken Froot, who created the index. “There are two points that should be kept in mind about the increase. First, confidence remains in the eighties, a relatively low level, albeit better than the low eighties observed in late 2008. Second, despite all of the concern surrounding sovereign balance sheets, corporate balance sheets remain in relatively good shape at present, and this is an attractive feature of equities for institutional investors.”
