Investor confidence falls in January

Investor confidence dropped in January on the back of concerns over stuttering global growth, a slowdown in China and falls in the price of oil.

According to State Street, its Global Investor Confidence Index fee rose by 1.5%, mainly due to lower confidence in North America and Asia, with a marginal drop in confidence in Europe. The index is based on the buying and selling pattern of institutional investors, with a higher allocation to equities indicating a higher confidence level. Jessica Donohue, executive vice president and chief innovation officer, State Street Global Exchange, commented: “We have seen an unprecedented slide in stock markets around the globe. Tumbling oil prices, a reaction to slowing demand in the face of a supply glut, and changing growth dynamics in China chipped away at investors’ confidence over the past month.”