Investor confidence falls - September 2021
/Investor confidence has fallen 4.0 points to 105.9 in September 2021, according to the State Street Global Markets Investor Confidence Index.
Key points include:
September was 105.9 while August was 109.9
The decrease in confidence was driven by European ICI, which fell 9.2 points to 95.6
North American ICI dropped 4.4 points to 106.1
Asian ICI fell 0.8 points to 97.7
A reading of 100 is neutral
“Investor confidence was marginally weaker in September, although despite the drop the Global ICI remained near its highest level in 3-years,” commented Marvin Loh, senior macro strategist at State Street Global Markets.
“However, all three regions contracted from strong results in the ICI reported in August, with Europe falling 9 points, while North American and Asia both declining by low single-digits. Resurgent infections from the delta variant have resulted in lowered growth expectations globally, although the economic backdrop continues to look attractive for above-trend growth in 2022. Additionally, numerous central banks, including the Fed, have indicated that they will slow asset purchases in the coming months, with some expected to wind down their QE operations by mid-2022, which may provide an ongoing headwind until the timeline for rate hikes becomes clearer.
