Please ensure Javascript is enabled for purposes of website accessibility

Investor Confidence Drops in March

By Dave Kovaleski - Updated Mar 27, 2020 at 5:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Confidence in North America is down on coronavirus concerns, but up in Asia.

Global investor confidence declined in March as the novel coronavirus became a global pandemic, according to the State Street Investor Confidence Index.

The index, developed by State Street (STT 2.81%), decreased four points from February to 74.5. Confidence was lowest in North America, where the index dropped 2.9 points to 67.8. Europe saw the sharpest decline, falling from 110.6 to 95.6. In Asia, the index rose 8.7 points to 94.5.

An image of a businessman taking notes on a notepad

Image Source: Getty Images

State Street's index measures investors' risk tolerance by analyzing institutional buying and selling. A reading above 100 means institutional investors are increasing their allocations; below 100 means they're decreasing.

"As the concerns over Covid-19 moved from China to Europe, the Investor Confidence Index has reflected this shift," said Lee Ferridge, State Street's head of multi-asset strategy for the Americas. "Rapidly growing case numbers in Europe pushed sentiment down by a marked 15 points, back below the neutral line of 100 for the first time since August. North American sentiment declined from an already low level, hovering near all-time lows as investors wait to see the breadth of fiscal and monetary response. In contrast, however, as the number of active cases in China declined, investor sentiment in Asia actually rebounded in March by 8.7 points, largely reversing February's decline."

This month's 74.5 overall score is the lowest since April 2019, when it was 72.9. In North America, the 67.8 number is actually up slightly from January, when it was 66.2.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

State Street Corporation Stock Quote
State Street Corporation
$63.38 (2.81%) $1.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.