07/28/2021 | Press release | Distributed by Public on 07/28/2021 08:02
BOSTON, July 28, 2021 - State Street Global Markets today released the results of the State Street Investor Confidence Index® (ICI) for July 2021.
The Global Investor Confidence Index increased to 100.6, a rise of 4.0 points from June's revised reading of 96.6. The increase in investor confidence was primarily driven by a 9.3 point jump in North America ICI to 105.1. European ICI also increased slightly, rising 1.8 points to 92.8. Meanwhile, Asian ICI continued its decline from June, falling 4.8 points to 87.0.
The Investor Confidence Index was developed at State Street Associates, State Street Global Markets's research and advisory services business, in partnership with FDO Partners. It measures investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors. The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.
'Risk appetite improved in July as the Global ICI ticked higher on confidence of continued reopening tailwinds,' commented Marvin Loh, senior macro strategist at State Street Global Markets. 'U.S. investor sentiment reversed all of last month's weakness with longer-term inflation expectations stabilizing despite higher than expected current price readings. Interest rates also fell by their widest margins in over a year, which kept financial conditions supportive of risk assets. In contrast, however, Asian investor confidence retreated to its lowest levels in a year, likely due to the region's vaccination levels lagging much of the developed markets and growth concerns starting to emerge in China. And, of course, we will need to keep an eye out moving into the fall if Delta variant concerns continue to grow.'
The index is released globally at 10 a.m. Eastern time in Boston on the last Wednesday of each month. More information on the State Street Investor Confidence Index is available at http://www.statestreet.com/ideas/investor-confidence-index.html.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $42.6 trillion in assets under custody and/or administration and $3.9 trillion* in assets under management as of June 30, 2021, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of June 30, 2021 includes approximately $64 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
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