Europe and Asia start 2016 on a high
Global investor confidence starts the New Year on a high on the back of increased confidence among European and Asian investors in December.
The State Street Investor Confidence Index (ICI) for December 2015, saw the Global ICI rise one point from November's reading of 107.3, driven by improved sentiment in the European index (rising from 96.2 to 103.7) and the Asian index, which jumped 4.6 points to 105.1 points.
State Street Global Markets senior managing director and head of global macro strategy, Michael Metcalfe, said the data suggested that "it appears European long-term investors were more forgiving as their allocation to risky assets went up over the course of the month".
"The knee jerk reaction from European equity and bond markets was to sell off together when the European Central Bank eased, but failed to increase its asset purchases program in early December," he said.
The rising confidence in the European and Asian ICIs contrasted with a 5.9 point slump in the North American ICI, in December to 106.6 points, with US investors becoming increasingly risk averse into year-end as uncertainty about global growth, weak commodity prices and the beginning of the Fed tightening cycle have eroded confidence to take risk, according to State Street ICI developer, Ken Froot.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Magellan has closed out the financial year with funds under management approaching $40 billion and outlined its estimated performance fees.
First Sentier Investors chief executive, Mark Steinberg, is set to depart the asset manager after seven years.
Metrics Credit Partners has completed the acquisition of Taurus Finance Group and BC Investment Group as it looks to launch consumer lending arm Navalo.
AMP has announced to the ASX that it is being sued by property fund manager Dexus regarding the sale of its real estate and domestic infrastructure equity business.
