Investor confidence on the rise in June
Investor confidence rose in June, suggesting that stock prices will rebound after recent sell off in global markets, State Street Global Markets reported yesterday.
The company's monthly index of sentiment among institutional investors, rose to 91 from May's 86.3. State Street Global Markets is the research and trading arm of State Street Corp. Harvard University professor Ken Froot, a developer of the index, said the rebound indicates professional investors have adjusted to the idea that interest rates may go a little higher as central banks work to keep the lid on inflation. The Federal Reserve, for example, is widely expected to boost its benchmark interest rate another quarter point to 5.25 percent when policy makers meet next week.
June's jump in investor confidence, said State Street's Paul O'Connell, "gives solid footing to recent surveys suggesting that stock prices are highly likely to rise through the end of the year.”
(By Robert Gavin, Globe staff)
