Global investor confidence as measured by State Street Global Markets’ Investor Confidence Index fell 1.9 points in October to 86.2, while investor confidence in North America fell 3.2 points to 84.9.
European investor confidence fell slightly by 0.6 points to 96.4, and Asian investor confidence fell 4.4 points to 103.3, according to a State Street news release.
“This month saw institutional investor confidence continue to ease further,” Kenneth Froot, Harvard business professor, who developed the index with Paul O’Connell, State Street director, said in the news release. “Looking at the underlying data, institutions have been allocating away from developed markets and toward emerging markets, but the net of the two flows has been negative. This continues a pattern established at the beginning of August and would suggest that institutional investors are content to play the role of liquidity provider rather than liquidity taker in the current market environment.”
Neither Mr. Froot nor Mr. O’Connell was available for comment, spokeswoman Alicia Curran Sweeney said in an e-mail.
Rankings of more than 100 in the index have a higher risk tolerance, while those below 100 are more risk averse.