Investor confidence within Europe was up based on information that was gathered on June 22, before the United Kingdom referendum. The article European investor confidence was up before Brexit from Funds Europe, discusses this and suggests that an increase in investor confidence before Brexit might help to explain why markets were not priced-in for Brexit causing the pound and European markets to fall. The data was based off of State Street’s Investor Confidence Index (ICI) which published that the European ICI was up by 3.5 points to 100.3. The ICI uses a 100 point scale as a metric for neutral confidence, anything above 100 is a sign of investor confidence. Senior Managing Director and head of global macro strategy at State Street Global Markets, Michael Metcalfe was quoted on the information: “The confidence of European investors rose in June, ahead of the UK’s EU referendum. This helps to explain why markets have moved so wildly following the vote to leave. Investors were not reducing risk sufficiently ahead of the vote”.
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