Confidence readings at a 9-year low
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Investor confidence worldwide sank to its lowest level in at least nine years in December, sapped by fears of continued credit turmoil and a deteriorating world economy, according to a survey released Tuesday.
U.S. investors were particularly downbeat.
State Street Corp. said its global investor confidence index sank to 65.9 from 75.8 in November. It was the lowest reading for the index since it was first compiled in September 1998. The second-lowest reading was 72.1 in February 2006.
The results strengthen “the evidence that investor risk appetite has been strongly impacted by the one-two punch of the August and November credit crises,” said Harvard professor and index co-developer Ken Froot.
The North American confidence index sank to an all-time low of 65.3 from 75.4 in November. The European index rose to 85 from 83.9. Asian investor confidence fell to 85.8 from 86.6.
State Street compiles its index based on asset movements among its institutional investor clients whose $15.1 trillion it keeps as custodian.
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