Confidence levels of North American investors fell to an all-time low of 65.3 points this month, down over 10 points on last month's figures.
The drop was a drag on overall global investor confidence figures down 9.9 points to 65.9 from last month’s 75.8, according to investment research and trading firm State Street Global Markets.
However, on the other side of the pond, European investor appetite improved from 83.9 to 85.0 although the confidence of Asian investors fell from 86.6 to 85.8.
The State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors. The index is based on financial theory that assigns precise meaning to changes in investor risk appetite, or the willingness of investors to allocate their portfolios to equities.
Commenting on this month’s findings, State Street Global Markets says: “This month, our quantitative measure of global investor confidence established a new low, cementing the evidence that investor risk appetite has been strongly impacted by the one-two punch of the August and November credit crises.
“In very recent days, we do see institutional investors following more of a holding pattern than a selling pattern, but the overwhelming conclusion from the data is that they are much more skeptical about fundamentals than they were in the first half of the year.
“Continuing the pattern established two months ago, it is the North American investor who has the bleakest outlook.
“European and Asian institutional investors have maintained their risk appetite again this month, albeit at lower levels than we saw a year ago. “The North American pessimism is mirrored almost exactly in the behaviour of US Consumer Confidence over recent months, the first time since 2003 that we have seen such congruence.”IFAonline
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