Global investor confidence rose in June, as risk appetite returned following the reopening of major economies around the world, according to the latest State Street Confidence Index survey.
Throughout the month, investor confidence increased to 94.3 points, a jump of 21.3 points since April.
Rajeev Bhargava, head of investor behaviour research at State Street Associates, said: “Unprecedented action by central banks combined with the reopening of major economies around the globe likely drove a more optimistic tone of investors.
“However, it will be important to see whether the positive momentum in sentiment endures as signs of a second wave in Covid infections drive volatility in asset markets.”
Regionally, North America led the way in terms of the rise in investor confidence, increasing 18.8 points to 86.2, followed by Asia, which saw confidence increase by 18.6 points to 100.
The European investor confidence index was up double digits as well, rising to 119.7 from 108.5, according to the report.
The Investor Confidence Index aims to evaluate and assign a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence, according to State Street Associates.
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 firm said.
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