European investor confidence is catching up with improving broader global sentiment now that Holland’s elections are out of the way, the State Street Investor Confidence Index (ICI) suggests.
The index reading for March showed that investor confidence at the global level was at 95.4 – up 4.2 points from February’s 91.2 reading.
European investor confidence, meanwhile, rose 11.9 points to 95.
Now almost catching the global level in March, Europe confidence in February trailed the global level by 12 points.
Rajeev Bhargava, head of investor behavior research at State Street Associates, said: “Easing of political tensions in the region post the Dutch elections, as well as sustained economic momentum on the back of a series of positive economic surprises, seems to have contributed to the more constructive tone from investors.”
The index measures global buying and selling patterns of institutional investors and the greater the percentage allocation to equities, the higher risk appetite or confidence there is. A reading of 100 is neutral, with investors neither increasing nor decreasing their long-term allocations to risky assets.
Among Asian investors, the reading is already over 100. The Asia ICI rose from 104.3 in February, to 109.6 in March. Yet the North American reading declined by 0.3 points, from 91.9, to 91.6.
The strong run in US stocks year-to-date, and the exiting of historically low rates were seen as reasons for the decline.
The Dutch election was said to be an “important test for populism”.
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