Investor sentiment towards Europe is “collapsing” and requires more policy responses to reverse it, research suggests.
Broadly, confidence among European investors has fallen its sharpest in 16 months, though confidence in Asia is rising, according to State Street’s Investor Confidence Index (ICI) for February.
Investor sentiment fell from 103.4 to 90.2 and suggests conservative investors are moving away from Europe due to concerns over heightened risk.
“With banking and government credit spreads under pressure once again, this decline in European confidence highlights the pressing need for additional policy measures in the region,” said Michael Metcalfe, senior managing director at State Street Global Markets.
Metcalfe added that moving forward, “all eyes” would be focused on the European Central Bank’s March meeting.
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