November saw UK investor confidence increase for the second month in a row, according to the latest investor sentiment index (ISI) from Lloyds Private Bank, with overall sentiment once again on a positive trajectory (up 0.53 per cent to 4.81 per cent).
This improving confidence is the first back-to-back monthly uplift in over a year, and longer-term confidence has doubled in twelve months (from 2.19 per cent to 4.81 per cent).This month’s continued rise in optimism mirrors better-than-expected UK growth forecasts, which may be giving investors a more positive outlook.
The biggest winner for November is Japanese shares, which rose a notable 5.20 per cent in performance and confidence rose 8.26 per cent to a high 12.48 per cent this month. This asset class hasn’t seen confidence of this level in nearly four years (12.62 per cent in January 2014). The latest uplift in investor confidence coincides with a steady improvement in performance over the last year of 24.60 per cent.
While October was a month to forget for UK asset classes, UK shares this month saw a resurgence in investor confidence rising to 4.45 per cent (up 3.94 per cent). The increase follows a two month dip. Interestingly, UK shares’ actual performance has been steadily improving which might suggest that investors who have struggled to get past market uncertainty previously, are now seeing improved UK growth forecasts as a possible reason to back UK equities.