State Street Investor Confidence Index August 2022

The State Street Investor Confidence Index rose 5.1 points in August to 107.3, with July’s revised reading being 102.2. European investor confidence jumped 20.4 points to 106.0, alongside North American investor confidence up 2.1 points to 106.5. Asian confidence fell 0.9 points to sit at 92.4.  

“Risk appetite in August continued on a positive path as the Global ICI rose just over 5 points to 107.3, largely fueled by an uptick in sentiment across US and in particular European investors,” commented Rajeev Bhargava, head of Investor Behavior Research, State Street Associates.

“Despite the many potential headwinds, including rising inflation concerns and energy security facing the European economy, interestingly, European investors have moved from a risk averse posture to a more neutral posture over the past month as markets rallied through much of August. Even after the selloff over the past week, net flows by European investors have been from developed to emerging market stocks, which has driven up the confidence score. However, it is going to be important to monitor whether the enthusiasm persists given recent heightened volatility in equity markets on the back of increasingly hawkish Fed speak.”