State Street’s Global Investor Confidence Index increased to 94.3 points in June, more than 20 points higher than the low it reached at the height of the coronavirus crisis in April. European investors are most upbeat.
The confidence of European investors rose more than 11 points to 119.7, meaning the majority of investors on the continent are increasing their allocations to risky assets. Asian investor confidence moved backed to neutral, rising 18.6 points from its May reading.
Only North American investor sentiment is still in negative territory, though the sentiment score there also rose strongly to 86.2 points.
“Risk appetite saw a strong rebound in June. The Global ICI rose to 94.3, its highest level in almost two years, buoyed by higher sentiment across all regions,” commented Rajeev Bhargava, head of Investor Behavior Research at State Street Associates. “Unprecedented action by central banks combined with the reopening of major economies around the globe likely drove a more optimistic tone of investors.”
“However, it will be important to see whether the positive momentum in sentiment endures as signs of a second wave in COVID infections drive volatility in asset markets,” she added, alluding to the renewed rise in infections in recent weeks, notably in some US states.