State Street Global Exchange says investor confidence in North America weakened in November, falling nearly 12 points, or about 10%, to 112.9 from 124.8 in October.
While the Asian ICI dropped 9.3 points to 100.7, the European Investor Confidence Index bucked global trends and rose by 6.3 points to 96.5 this month. Overall, the Global Investor Confidence Index declined by 7.2 points, moving down to 106.8 from 114 in October – a decline of 6%.
“In November, the spotlight was once again on the Fed as investors adjusted to an increased probability of a December rate hike,” said Ken Froot, a co-developer of the index, in a statement. “The North American sentiment resonated globally, signaling investors’ lack of readiness for U.S. policy normalization, even if the pace is expected to be gradual.”
Asian optimism for investing has seen “a sharp turnaround,” according to Jessica Donohue, executive vice president and chief innovation officer for State Street, as a stronger U.S. dollar and continued commodity price declines “weigh heavily on the region.”
Investor sentiment in Europe saw some improvement tied to the prospects of further stimulus by the European Central Bank, Donohue explains. “Divergence in monetary policy, however, was not enough to bring European sentiment above the risk averse threshold.”