Investor confidence up in September

Oksana Patron

30 September 2022

The State Street Global Investor Confidence Index (ICI) grew to 108.8 in September, up 1.5 points from August’s revised reading of 107.3, and was led by a 7.7 point jump in the Asian ICI to 100.1.

The North American ICI rose as well to 109, up 2.4 points compared month-on-month, but the European ICI went down 5.5 points to 100.1. as European investors “were rattled by a continued energy crisis, diminishing growth prospects and hawkish global central banks”.

Cayla Seder, macro strategist with State Street Global Market’s Multi-Asset Strategy team, said that overall risk sentiment expressed by institutional investors remained steady in September despite heightened equity market volatility experienced globally.

“Going forward, it will be important to monitor whether the dip in European investor confidence persists given the market’s negative reaction to the UK’s recent fiscal plans,” she said.

“Overall, the increase in the September Global ICI can be largely attributed to Asia-Pacific investors as risk appetite grew in tandem with the reopening of borders and easing of restrictions in Macau and Chengdu China.”

The Investor Confidence Index 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.