Investor confidence falls in Sept: State Street

LONDON (BestGrowthStock) – Confidence among institutional investors fell globally in September as they grew concerned about a soft patch in the United States, State Street said on Tuesday.

The U.S. financial services firm said its global investor confidence index fell to 92.0 from an downwardly revised 88.0 in August. The August reading was previously stated as 92.1.

Anything below 100 implies bearish sentiment among State Street’s large institutional clients. The index was last above 100 in March.

The North America index fell the most, losing 7.3 points to 87.9 from August’s reading of 95.2.

European investors’ confidence dropped to 97.2 from 98.4, while Asian investors bucked the trend, with their confidence rising to 107.9 from 103.5.

“We see that the decline is driven largely by North American investors; elsewhere we see a much more upbeat mood. One underlying driver here is the persistent softness observed in the U.S. economy over the summer,” said Harvard professor Ken Froot, a co-developer of the index.

State Street’s Paul O’Connell — also a co-developer — said institutional portfolio flows this month showed a rotation out of some ‘core’ markets such as the United States and Europe outside Britain into emerging markets and Asia.

“This month’s numbers reflect a re-evaluation of relative country prospects by investors, rather than a wholesale reduction in risk appetite,” he said.

The indexes are drawn from movements in around $19 trillion of assets State Street holds as custodian and administrator for institutional investors.

(Reporting by Natsuko Waki; Editing by Ron Askew)

Investor confidence falls in Sept: State Street