BOSTON, December 29, 2021 — State Street Global Markets today
released the results of the State Street Investor Confidence Index® (ICI) for
December 2021.
The Global Investor Confidence Index decreased to 85.6, a significant drop of
25.9 points from November’s revised reading of 111.5. European ICI drove the
decline, plunging 27.8 points to 67.6. North American and Asian ICIs were also
down double digits, with the North American ICI falling 14.0 points to 96.4,
and Asian ICI falling 12.4 points to 95.2.
The Investor Confidence Index was developed at State Street Associates, State
Street Global Markets’s research and advisory services business, in
partnership with FDO Partners. 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.
“Investor sentiment soured notably at the end of the year with the Global ICI
registering its largest monthly decline in the history of the index,”
commented Marvin Loh, senior macro strategist at State Street Global Markets.
“The sudden emergence of Omicron and the hawkish pivot from the Fed drove some
of most volatile swings in the equity markets all year. Sentiment in Europe
was the weakest, with many EU countries again implementing travel and mobility
restrictions, while North America registered its 7th biggest monthly decline.
Despite weakening sentiment, other equity indices are ending the year near
their all-time highs, as recent signs emerge that Omicron is less virulent
than previous variants. Positive Investor sentiment will nonetheless be
challenged by tightening financial conditions, high inflation and fiscal
headwinds as we start 2022.”
The index is released globally at 10 a.m. Eastern time in Boston on the last
Wednesday of each month. More information on the State Street Investor
Confidence Index is available at
http://www.statestreet.com/ideas/investor-confidence-index.html.
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
$43.3 trillion in assets under custody and/or administration and $3.9
trillion* in assets under management as of September 30, 2021, State Street
operates globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State Street's
website at www.statestreet.com.
*Assets under management as of September 30, 2021 includes approximately
$60 billion of assets with respect to SPDR® products for which State Street
Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the
marketing agent. SSGA FD and State Street Global Advisors are
affiliated.
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