State Street Global Markets today released the results of the State Street Investor Confidence Index (ICI) for December 2021. Globally, the index fell to 85.6, a significant drop of 25.9 points from the November survey. of 111.5. The European ICI led the decline, plunging 27.8 points to 67.6. The North American and Asian ICI also saw double-digit falls, respectively of 14.0 points (to 96.4), and 12.4 points (to 95.2).
“Investor sentiment tightened significantly at the end of the year, with the global index posting the largest monthly decline in the index’s history,” said Marvin Loh, senior macro strategist at State Street Global Markets. “The sudden emergence of Omicron and the Fed’s hawkish stance resulted in the most volatile movements in equity markets throughout the year. Europe is the region that has had the weakest sentiment, and this is due to the fact that many EU countries have again implemented travel and mobility restrictions, while North America recorded the seventh largest monthly decline. ” “Despite the weakening of sentiment – adds the expert -, the other equity indices are ending the year near their all-time highs, as recent signs emerge that Omicron is less virulent than the previous variants. Positive investor sentiment will however be put tested by tightening financial conditions, high inflation and fiscal headwinds at the beginning of 2022 “.