Investors are still confident, although their level of confidence dropped in December, State Street Global Exchange said in a news release Tuesday.
Measured by the company’s monthly Investor Confidence index, the Global ICI dropped 1.6 points in December to 112.1, driven primarily by growing pessimism in Europe. Europe’s regional ICI dropped 10.2 points from 129.7. North American confidence, meanwhile, dropped 1.5 points to 102.6.
A reading of 100 is considered by SSGX to be neutral, the level at which investors’ confidence or appetites for risk are neither increasing nor decreasing.
“This month’s fall in confidence was led by European investors,” said Michael Metcalfe, senior managing director and head of global macro strategy at State Street Global Markets, in the news release. “With no additional monetary stimulus from the (European Central Bank) in December, hopes have been transferred to the upcoming January meeting. However, with eurozone deflation soon becoming a reality and (Greece’s) default risk rising once more, eurozone confidence appears vulnerable to any disappointment.”
Asia’s regional ICI rose by 1.7 points to 100 in the month.