European institutional investor confidence saw a “material” rise in April, as measured by a leading index.
The State Street European Investor Confidence Index (ICI) increased from 95.5 in March to 102.8 in April, suggesting institutions were increasing their allocations to risky assets.
Stimulus from central banks was said to be behind the rise.
Rajeev Bhargava, head of investor behavior research at State Street Associates, said: “The unprecedented amount of stimulus central banks have injected into markets as well as signs of a slowing in new covid cases locally seem to have had a stabilising effect on risk behavior.”
The US index also showed an uptick, though remained below the 100/neutral reading (the point at which investors are neither increasing or decreasing risk exposures) and was still comparatively low at 68.
In aggregate, the global index showed a decrease in confidence of 0.7 points to 73, while the Asia index “plummeted” by 18.3 points to 80.
Bhargava said: “Despite an end of the lockdown in China, the Asia ICI fell to its lowest level since 2005, possibly a reflection of weaker economic data regionally and renewed concerns over the region’s ability to sustainably exit lockdown as cases resurface in previously locked-down countries.”
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