State Street Global Markets: Investor confidence edged up slightly in July

An global index for investor confidence posted a 94 reading in July, up 0.7 points from June’s reading of 93.3, as many investors seemed to be in a cautious mood, State Street Global Markets said.

A reading of 100 represents neutral on the index scale. State Street Global Markets, which maintains the index, is the investment research and trading arm of State Street Corp., a financial services company headquartered in Boston.

The State Street Investor Confidence Index was developed by Harvard University professor Kenneth Froot and Paul O’Connell of State Street Associates, and the index seeks to measure investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors.

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While sentiment among Asian investors slightly improved in July, confidence among both North American and European investors ticked downwards, State Street Global Markets said.

“The message being sent by institutional investors this month is one of caution,” Froot said in a statement. “The pick up in equity buying that we noted last month proved short-lived, and flows had turned negative by the end of our July sample. It should be noted that the sample ends just before the latest round of policy pronouncements from European policy makers. As such, it remains to be seen whether these policy moves will have a meaningful impact on risk appetite.”

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