European investor confidence was shaken by pandemic concerns in October, while overall risk appetite worldwide declined.
European investors registered a reading of 92.8 on the State Street Global Markets Global Investor Confidence Index (ICI)– a fall of 17.4 points compared to September.
The reading, having dropped below 100, means they are selling more risk assets than they are buying.
According to the ICI, global investor confidence decreased to 80.1, down 3.8 points rom September’s final reading of 83.9. This decline was primarily driven by the loss of risk appetite in Europe.
The North American ICI fell by just two points to 76.8. Meanwhile, Asia bucked the trend of declining confidence levels, with the Asian ICI increasing to 91.7 from 84.5.
Rajeev Bhargava, head of investor behaviour research at State Street Associates, said: “Aggregate risk appetite slipped in October, and the decline in sentiment was seemingly driven by US and European investors, as a second wave of Covid infections rose sharply and simultaneously across regions, again elevating concerns about growth.”
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