Global investor confidence as measured by the State Street Global Markets' Investor Confidence Index increased 1.3 points in June to 89.7, although North American investor confidence fell 6.3 points to 92.2 during the same time period.
Confidence among European investors rose 5.4 points to 97.7, and Asian investor confidence increased 1.7 points to 102.6, according to a news release from State Street.
“Despite seeing a rise in confidence globally, North American institutional investors remained jittery (in June), and their risk appetite returned to levels last seen in spring 2009. Question marks remain over the state of the U.S. job market and overall U.S. aggregate demand and these, in turn, have led to diminished expectations about the pace of economic recovery,” Ken Froot, Harvard business professor, who developed the index with Paul O'Connell, State Street director, said in the news release.
The strongest regional flows are into emerging markets, with the exception of Eastern Europe, Mr. O'Connell said in the release.
“In addition, institutions outside of North America have been steadily accumulating U.S. equities,” Mr. O'Connell said.
Readings above 100 suggest investors are allocating more risk, while those under 100 suggest allocations of less money to risky investments. — Timothy Inklebarger