Global investor confidence has fallen by 10 points to 87, on sharp declines from North American and European investors.
The State Street Investor Confidence Index is a quantitative measure of confidence, analysing actual buying and selling patterns of institutional investors.
The index basically measures investor willingness to allocate portfolios to equities.
Confidence in Europe dipped from 98.1 to 90.4, while North America fell to 95.8, from 107.
Asian investors maintained their risk appetite, with a small decline of 0.5% to 83.5.
“After the relatively strong readings we have recorded in recent months, it is perhaps not surprising to see something of a reversal this month,” Harvard University professor Ken Froot says.
“Even as the macroeconomic growth picture has crystallised, the conflicting signals being sent by individual earnings announcements, coupled with the likelihood of tighter monetary conditions than previously expected, have resulted in a more cautious pattern of investor behaviour this month.”
State Street Associates director Paul O’Connell says Asian confidence has run somewhat below European and North American counterparts in 2007.
“Asian investors have displayed less susceptibility to the turmoil in the sub-prime and credit markets,” he says.
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