SINGAPORE, Sept 29 — State Street Global Markets has released the results of its Investor Confidence Index (ICI) for September 2022, which saw Asia leading the rise.
The Global ICI increased to 108.8, up 1.5 points from August’s revised reading of 107.3, led by a 7.7-point jump in Asian ICI to 100.1 followed by North American ICI, which was up 2.4 points to 109.
However, European ICI fell 5.5 points to 100.1.
In a statement issued here today, Macro Strategist with State Street Global Market’s Multi-Asset Strategy Team Cayla Seder said risk sentiment expressed by institutional investors remained steady in September despite heightened equity market volatility experienced globally.
“As anticipated, European investors were rattled by a continued energy crisis, diminishing growth prospects and hawkish global central banks. As a result, Europe, Middle East and Africa (EMEA) ICI tumbled 5.9 points,” said Seder.
Going forward, Seder said it will be important to monitor whether the dip in European investor confidence persists given the market’s negative reaction to the United Kingdom’s recent fiscal plans.
“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 strategist said.
The ICI was developed at State Street Associates, State Street Global Markets research and advisory services business.
It measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.
The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence.
A reading of 100 is neutral, where investors are neither increasing nor decreasing their long-term allocations to risky assets.
The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.
State Street Global Markets is the securities business of State Street Corp, one of the world’s leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading.
With US$38.2 trillion (RM177 trillion) in assets under custody and/or administration and US$3.5 trillion in assets under management (AUM) as of June 30, 2022, State Street operates globally in more than 100 geographic markets and employs about 40,000 worldwide. — Bernama
