Global investor confidence outside of Asia has dropped since September, driven primarily in a steep decline in confidence in Europe, according to State Street Global Markets.
SSGM's Global Investor Confidence index fell to 80.1 from September's revised index of 83.9, according to a news release Wednesday.
The results were driven by a steep drop in the European index to 92.8 from 110.2 in September, while the U.S. index dropped to 80.1 from 83.9.
The Asian index, however, rose to 91.7 from 84.5.
The index assigns a numerical value to changes in investor risk appetite; the index amount of 100 is neutral, in which investors have no plans to increase or decrease exposure to risky assets.
"Aggregate risk appetite slipped in October, and the decline in sentiment was seemingly driven by U.S. and European investors, as a second wave COVID infections rose sharply and simultaneously across regions, again elevating concerns about growth," said Rajeev Bhargava, head of investor behavior research at State Street Associates, in a news release.
"Interestingly, Asia witnessed a bounce in investor appetite, possibly reflecting the regions current ability to contain the virus locally," Mr. Bhargava said. "However, combined with the uncertainly over the upcoming U.S. election, the long-term trend for global investor sentiment remains unclear."
