Global Investors Less Confident, but U.S. Affluent Index Surges

While some professional investors say they are less confident about the world’s equity markets, U.S. investors are upbeat on U.S. equities, according to two polls released on Tuesday.

The State Street Global Investor Confidence Index fell by 2.5 points in March to 120.2.

According to State Street, this decline was driven by a deterioration in the outlook of European institutional investors; the European index decreased 1.5 points to 108.6 in March.

But risk sentiment remained “resilient” in North America, the group says, and confidence among Asian investors increased; the Asian index rose 7.4 points to 114.3.

“Geopolitical risk in the Ukraine, Turkey and other emerging markets has yet to have a significant negative impact on institutional investor behavior,” said Kenneth Froot, a founding partner of State Street Associates, in a press release. “Institutions have largely maintained their allocations to equities on a global basis. With no major negative news appearing on the economic front, sentiment remained unaffected during the period.”

“Policy and credit fears in China failed to dampen sentiment amongst Asian institutional investors,” added Jessica Donohue, senior managing director and head of research and advisory services, State Street Global Exchange (STT), in a statement. “Our data suggests that institutions continue to add risk in the region in the face of mounting policy pressures. The People’s Bank of China’s recent move to double the yuan trading band to allow for greater currency fluctuation, however, reflects policymakers’ commitment to financial liberalization reform.”