US investors get the jitters as global market confidence plummets
Investor confidence has plunged this month as rampant inflation and global political uncertainty continues to batter public markets, according to a survey of investor sentiment published today.
Confidence has fallen across every region globally, with US investors pulling back the most sharply as equity markets remain in turmoil, according to the investor confidence index from retail investment platform Hargreaves Lansdown.
The index plummeted 10 points this month, down to 57, with North America confidence plunging the most sharply at 20 points, the index found.
Analysts at Hargreaves Lansdown said investors jitters had continued to spread as a recession loomed.
“Rising inflation, political uncertainty and growing concerns about a global recession has hit investor confidence hard this month,” said Emma Wall, Head of Investment Analysis and Research.
“Across the globe, central banks are raising interest rates in a bid to stem inflation – but with so much out of policy committee’s control, the immediate outlook remains bleak. The war in Ukraine continues to dominate prices, markets and the economic outlook.”
Equity funds have been haemorrhaged outflows as investors flee to more stable assets. The week to 2oth June saw equity funds face their biggest exodus in five weeks, according to data from Refinitiv Lipper.
Rattled investors offloaded net $13.79bn worth of global equity funds last week in the biggest weekly outflow since June 15.
Wall said the trend had been reflected on Hargreaves platform as investors looked elsewhere.
“Amongst the most bought funds on the HL platform this month have been both money market funds, and multi-asset funds invested for capital preservation, such as Troy Trojan, and the Personal Assets investment trust,” she said.