State Street: European investor confidence falls for the second month, down 1.8 points to 92.0.

State Street Global Markets today released the results of the State Street Investor Confidence Index® (ICI)* for November 2020. The Global ICI increased to 90.7, up 10.6 points from October’s revised reading of 80.1. The rise in Investor Confidence was primarily driven by a 10.6 point jump in North American ICI to 87.4. The Asian ICI also increased to 95.1 from 91.8. Meanwhile European ICI fell for the second straight month, down 1.8 points to 92.0.

“Global risk sentiment improved quite a bit November, and we actually saw the highest jump since June and the second best global reading of 2020,” commented Marvin Loh, senior macro strategist at State Street Global Markets. “The gains were led primarily by an improving outlook in North America, which recorded its highest readings of the year on the back of the conclusion of the U.S. election process and positive news regading a COVID-19 vaccine. Equity valuations reached new highs, with the Dow Jones poised to record its strongest monthly return of the year as value outperformed growth. In contrast, risk appetite fell to its lowest levels of the year in Europe, as surging virus cases resulted in another round of lockdowns and restrictions. Ongoing Brexit negotiations and an EU budget impasse further sapped investor confidence, although most European bourses are set to report double-digit gains for the month.”