The State Street Investor Confidence Index (ICI), which measures investor confidence through an analysis of institutional investor buying and selling patterns, increased 0.5 points in May to 119.5.
The North American ICI fell 6.4 points to 115.5 while the Asia ICI declined 10.6 points down to 104.4.
European investor confidence, on the other hand, rose with the European ICI up 9.3 points to 111.2.
State Street Global Exchange senior managing director and head of research and advisory services Jessica Donohue said the prospects for increased easing by the European Central Bank contributed to a more positive outlook in Europe.
“However, the gains in Europe have been somewhat offset by valuation concerns in the US, which have tempered the level of confidence in North America.”
Harvard Business School Professor Kenneth Froot said the “growing concerns over China’s property market and continued manufacturing contraction may have impacted Asian investor sentiment”.
“It will be important to see how institutions invested in emerging markets respond as Fed tapering progresses and the prospect of rising short-term rates in the US comes to the front of investors’ minds,” said Professor Froot.
