Global investor confidence fell 9.2 points in February to 91.6 as measured by State Street Global Markets' Investor Confidence Index that was released Tuesday, confirmed State Street spokeswoman Alicia Curran Sweeney.
Investor confidence in North America dropped 6.8 points to 92.5, European investor confidence fell 13 points to 79.8, while Asian investor confidence fell 4.3 points to 92.2.
“The numbers this month are fairly emphatic in signaling a decline in institutional investor confidence,” said Kenneth Froot, Harvard University business professor who helped developed the index with Paul O'Connell, a State Street director, said a State Street news release.
“Political turmoil in the Middle East and North Africa, policy tightening in emerging markets and qualms about the pace of the recent run-up in developed markets equities are likely at the root of this,” he added. “In the case of European investors, there is the added uncertainty around the upcoming March negotiations on sovereign debt and the European Financial Stability Facility to consider.”
Neither Mr. Froot nor Mr. O'Connell was immediately available for further comment.
Rankings of more than 100 in the index indicate investors have a higher risk tolerance, while those below 100 show investors are more risk averse.