Asian investor sentiment plummets

Global investor confidence dipped in April, driven by weaker sentiment in Asia, according to State Street.

State Street’s global investor confidence index recorded a decrease of 0.7 points to 73 in April from March as Asian sentiment dropped 18.3 points to 80. However, Norther American investors were most optimistic with an increase of 1.2 points to 68 and European sentiment up from 95.5 to 102.8/

State Street Associates head of investor behaviour research, Rajeev Bhargava, said: “Despite an end of the lockdown in China, the Asia investor confidence index 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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“In contrast, however, the US and Europe showed stability in investor appetite this month with Europe actually seeing a material rise in investor confidence.

“The unprecedented amount of stimulus central banks have injected into markets as well as signs of a slowing in new COVID-19 cases locally seem to have had a stabilizing effect on risk behaviour.”

An index reading of 100 is neutral – the level at which investors were neither increasing or decreasing their long-term allocations to risky assets.

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