Investor sentiment on commodities has turned positive for the first time in six months, according to Lloyds Bank’s latest index.
Commodities have seen the greatest monthly increase in confidence, while gold and UK property remain popular.
Overall, investor confidence has risen slightly since last month’s record low, reflecting in part an improvement in the actual market performance of all but two asset classes, according to the index.
Ongoing nervousness in markets has contributed to a continued cautious response from investors on the whole, however.
Volatile investor attitudes to emerging market equities has also continued, with this month seeing a positive swing of 4.39 per cent, potentially showing a more short-term preference for this asset class.
Despite an improved picture, investor sentiment is more negative towards the more unfamiliar and riskier asset classes, regardless of their performance, according to the Lloyds index.
Lloyds’ index showed investors seem to have little confidence in UK government bonds and UK corporate bonds at the moment, while eurozone and Japanese equities have the lowest confidence ratings across the board.
Alongside this, US equities have also now crept into negative territory.
Markus Stadlmann, chief investment officer at Lloyds Private Banking, said investor sentiment had become more positive for most asset classes, albeit from a low base.
He added: “There are growing reservations about investing more money in equities, with the exception of emerging markets. UK gilt and corporate bond sentiment has fallen considerably, which probably reflects concerns about whether they can deliver positive returns in the future.
