A global investor confidence index maintained by a unit of State Street Corp. posted a reading of 120.2 in March, down 2.5 points from the February reading, as confidence faltered a bit among European investors.
But so far, political unrest in Ukraine has yet to have a negative impact on the global index, a Tuesday press release from State Street noted.
A reading of 100 is neutral for the index, said State Street, a Boston-based financial services company. Developed by Kenneth Froot and Paul O’Connell at State Street Associates, the index seeks to measure investor confidence by analyzing the buying and selling patterns of institutional investors. Since 2005, the index has tracked three regional components of investor confidence. The regions are North America, Europe, and Asia.
In a statement, Froot commented on the index’s March reading.
“Geopolitical risk in Ukraine, Turkey, and other emerging markets has yet to have a significant negative impact on institutional investor behavior,” Froot said. “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.”