Investor Confidence Rose in July by 1.0 Points to 101.8

Tuesday, July 31, 2018 11:11 am EDT

Dateline:

BOSTON
"Despite the recent rebound in equity markets, we haven’t seen significant traction in risk appetite globally over the past couple of months"

State Street Global Exchange® today released the results of the State Street Investor Confidence Index® (ICI) for July 2018.

The Global Investor Confidence Index increased to 101.8, up 1.0 point from June’s revised reading of 100.8. Confidence among North American investors declined, with the North American ICI decreasing from 104.2 to 103.4. Meanwhile, the European ICI rose by 0.7 points to 91.5 and the Asia ICI increased by 0.5 points to 103.3.

The Investor Confidence Index was developed by Kenneth Froot and Paul O’Connell at State Street Associates, State Street Global Exchange’s research and advisory services business. It measures investor confidence or risk appetite quantitatively by analyzing 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; it is the level at which 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.

“Despite the recent rebound in equity markets, we haven’t seen significant traction in risk appetite globally over the past couple of months,” commented Rajeev Bhargava, managing director and head of Investor Behavior Research at State Street Associates. “It appears that geopolitical uncertainty continues to be a major risk factor on the minds of investors.”

“The regional breakdown shows that North American and Asian investors have tamed their risk appetite from an overly optimistic level, with ICI readings just a few points above the neutral mark. At the same time, European investor sentiment remains anchored in risk-off territory. It is possible that the prospects of escalating trade protectionism, political uncertainty, and lagging earnings growth continue to depress institutional investor sentiment,” commented Kenneth Froot.

About the State Street Investor Confidence Index®
The index is released globally at 10 a.m. Eastern time in Boston on the last Tuesday of each month. More information on the State Street Investor Confidence Index is available at http://www.statestreet.com/ideas/investor-confidence-index.html.

Starting in August, the State Street Investor Confidence Index release date will change. Beginning August 29, 2018 the index will be released at 10 a.m Eastern time in Boston on the last Wednesday of each month.

About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $33.90 trillion in assets under custody and administration and $2.70 trillion* in assets under management as of June 30, 2018, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.
*Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $33 billion as of June 30, 2018), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

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