State Street Global Exchange has released the results of the State Street Investor Confidence Index (ICI) for August 2018. The index decreased to 94.3, down 7.4 points from July’s revised reading of 101.7.
Confidence among North American investors declined, with the North American ICI decreasing from 103.1 to 92.5. Meanwhile, the European ICI rose by 8.1 points to 99.5 and the Asia ICI decreased by 0.9 points to 102.6.
Kenneth Froot commented: “After a few months of caution and measured risk appetite, global institutional investors have started to display risk-averse behaviour as they navigate through elevated trade uncertainty and geopolitical turmoil. This sentiment was also seen across global equity markets as defensive sectors outperformed. The decline in confidence was particularly apparent for North American investors, with the North American ICI recording its lowest reading of the year.”
“Looking at the regional breakdown, the European ICI has exhibited a lot of volatility this year,” commented Rajeev Bhargava, head of Investor Behavior Research, State Street Associates. “President Trump’s trade policies continue to stir up investor uncertainty, in addition to the renewed worries over Italy’s debt burden.”