State Street Global Markets released the results of the State Street Investor Confidence Index® (ICI) for July 2021. The Global ICI increased to 100.6, a rise of 4.0 points from June’s revised reading of 96.6. The increase in investor confidence was primarily driven by a 9.3 points jump in North America ICI to 105.1. The European ICI also increased slightly, rising 1.8 points to 92.8. Meanwhile, Asian ICI continued its decline from June, falling 4.8 points to 87.0.

“Risk appetite improved in July as the Global ICI ticked higher on confidence of continued reopening tailwinds,” commented Marvin Loh, senior macro strategist at State Street Global Markets. “U.S. investor sentiment reversed all of last month’s weakness with longer-term inflation expectations stabilizing despite higher than expected current price readings. Interest rates also fell by their widest margins in over a year, which kept financial conditions supportive of risk assets.

In contrast, however, Asian investor confidence retreated to its lowest levels in a year, likely due to the region’s vaccination levels lagging much of the developed markets and growth concerns starting to emerge in China. And, of course, we will need to keep an eye out moving into the fall if Delta variant concerns continue to grow.”