Investor sentiment went in different regional directions in January, driven to some extent by varying views of how fast and effective COVID-19 vaccine rollouts have been.

A sharp fall in North American investor confidence – hit by worries about uneven vaccine rollouts – took a global barometer of sentiment down in January this year, although Asia and Europe bucked the trend, new figures show.

The State Street Investor Confidence Index®, which tracks the actual buying and selling habits of investors, fell to 100.7, down 3.8 points from December’s revised reading of 104.5. The fall in Investor Confidence was driven by a 7.3 point decline in North American ICI to 96.0. The European ICI and Asian ICI both increased.

A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets.

“Investor confidence was generally stable in January with the Global ICI remaining near their highest levels in two years,” Marvin Loh, senior macro strategist at State Street Global Markets, said.

“Vaccine rollouts and the prospect of additional stimulus in the US provided a supportive backdrop for risk to start the year. However, increases in the number of new COVID cases and uneven vaccination rollout efforts have hindered further gains, with regional changes reflecting these differences,” Loh said. “The decline in confidence in North America stands in contrast with the continued improvements in Asia, which has been buoyed by a more rapid return to economic expansion relative to western countries. The pace and efficacy of vaccine efforts over the coming months will certainly set the tone for investors at the start of this new year.”

The index was developed at State Street Associates, State Street Global Markets’s research and advisory services business, in partnership with FDO Partners. It looks at the actual buying and selling patterns of institutional investors. The greater the percentage allocation to equities, the higher risk appetite or confidence.