Appetite for global equities helps global investor confidence rise

Global confidence among investors rose 15.1 points to 120.1 on the back of a renewed appetite for global equities, according to State Street Investor Confidence Index (ICI) for March 2015. 

North America lead the pack with a rise of 30 points to 135.4 during the month. The European ICI fell 1.6 points to 104.4 while the Asia ICI fell 4.0 points to 90.3. 

"We've been in a post-crisis regime characterised by diversification out of international equities and into safer asset classes. However, given the continued liquidity provision from major central banks, institutions appear to be developing renewed appetite for global equities," said founding partner of State Street Associates and co-developer of the index, Kenneth Froot. 

"With reduced short-term interest rate forecasts for 2015 and 2016 by the Federal Reserve and the commencement of sovereign quantitative easing by the European Central Bank, North America investor sentiment increased the most." 
Commenting on the decline in the European ICIC, State Street Global Exchange executive vice president, Jessica Donohue said "Market participants may still be concerned about any fallout from negotiations over Greek reforms." 

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"Growth concerns in China may have led to the decline in the Asia ICI." 

The index reads 100 as the neutral level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. It is also only based on actual trades, as opposed to opinions.