SINGAPORE (June 26): The Global Investor Confidence Index (Global ICI) jumped 21 points in June to 94.3 points, from May’s revised reading of 73.3.
The results, which were released by State Street Global Markets on Friday, showed rising confidence amongst global investors as countries are gradually emerging from their lockdowns post-Covid-19.
The increase was led by the North American ICI, which rose 18.8 points to 86.2, followed closely by the Asian ICI which was up 18.6 points to 100.0.
The European ICI was up 11.2 points, to 119.7 from 108.5.
“Risk appetite saw a strong rebound in June. The Global ICI rose to 94.3, its highest level in almost two years, buoyed by higher sentiment across all regions,” says Rajeev Bhargava, head of Investor Behavior Research, State Street Associates.
“Unprecedented action by central banks combined with the reopening of major economies around the globe likely drove a more optimistic tone of investors. However, it will be important to see whether the positive momentum in sentiment endures as signs of a second wave in COVID infections drive volatility in asset markets,” he adds.
The ICI measures investor confidence or risk appetite through the actual buying and selling patterns of institutional investors. A greater percentage allocation to equities shows higher risk appetite or confidence among investors.
A reading of 100 is neutral, where investors are not making changes to their long-term allocations to risky assets.
