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
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
