Investor confidence up in January

Oksana Patron

30 January 2023

The Global Investor Confidence Index (ICI) increased to 76.5 in January, up 0.5 points from December’s revised reading of 76.0, and was driven by a 5.7 point rise in the Asian ICI to 92.5 as well as a modest 0.7 point increase in the North American ICI to 73.1.

The European ICI, meanwhile, fell 0.3 points to 101.2, according to the State Street Global Markets (SSGM).

Rajeev Bhargava, head of Investor Behavior Research, State Street Associates, said that the precipitous decline in risk appetite experienced over the past few months paused in January as the global ICI rose to 76.5, from December’s revised reading of 76.

“While Europe continued to hover above the 100 level, appetite of US investors remained markedly more subdued, likely driven by increasing fears of an impending recession locally,” he said.

“Interestingly, sentiment in Asia improved this month, a reflection of rising optimism within the region despite elevated concerns over the rapidly increasing rate of COVID infection.”

The Investor Confidence Index, which is developed at State Street Associates, State Street Global Markets research and advisory services business, measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors, with a reading of 100 being neutral and indicating the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets.