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Global investor confidence weakens for the 5th straight month in December


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Global investor confidence weakens for the 5th straight month in December

The global investor confidence fell for the fifth straight month in December, driven by weaker investor confidence in North America and Asia, the latest State Street Investor Confidence Index showed.

The index slipped 1.5 points to 94.8 this month from a revised November reading of 96.3. Investor confidence in North America decreased 6.2 points to 94.9 while the Asian investor confidence index slipped 2.8 points to 94.8.

The European investor confidence index jumped 16 points to 96.9, according to the report.

"While the broader economic outlook appears increasingly rosy, as captured by measures of consumer and business confidence, the more cautious nature of investors hints at a concern that financial markets may have already discounted much of the good news," said Michael Metcalfe, senior managing director and head of Global Macro Strategy, State Street Global Markets.

Kenneth Froot said healthy growth and continued European Central Bank asset purchases may have helped boost investor confidence in Europe. "It seems that European-based investors are becoming less concerned that political risks could derail the strong economic performance across the region," he added.

The investor confidence index by the State Street Global Exchange measures investor confidence or risk appetite quantitatively through analysis of actual buying and selling patterns of institutional investors.