Investor confidence in March has increased, according to the Global Investor Confidence Index (ICI) released on April 1 by State Street Global Markets (SSGM).

Around the world, the index rose 2.0 points m-o-m to 93.9, from February’s revised reading of 91.9.

The increase, according to SSGM, was driven by the European ICI, which surged 12.6 points to 90.7. The North American ICI also registered m-o-m growth at 1.1 points to 94.4.

The Asian ICI, on the other hand, fell 4.9 points to 93.2.


SEE:Investor confidence plummets, shows signs of further decline: State Street


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“The first quarter of 2021 has brought with it new challenges for investor confidence, in particular whether higher bond yields are simply reflecting the reflation trade or are a threat to it,” says Michael Metcalfe, head of Global Macro Strategy, State Street Global Markets.

“After seeing it fall sharply for two-months in a row, investors’ confidence, led by Europe, stabilized and rose modestly in March. While the overall level of the index suggests investors should remain watchful of risky assets, the modest improvement in confidence suggests they are learning to live with higher yields – for now at least,” he adds.

The index, which was developed at State Street Associates, SSGM’s research and advisory services business in partnership with FDO partners, measures investor confidence by analyzing the actual buying and seller patterns of institutional investors.

According to the index, the greater the percentage allocation to equities reflects a higher risk appetite or confidence. A reading of 100 is neutral, where investors are neither increasing or decreasing their long-term allocations to risky assets.