Individual investors across Europe were less optimistic in February as continued economic weakness raised concerns about the outlook for European financial markets, according to the UBS Index of Investor Optimism® - EU 5.

The February Index shows investor optimism at a current level of 20 points, down from 40 points last month. In particular, the outlook for economic growth over the coming twelve months dampened, with 41% of private investors pessimistic in February compared with 33% in January. Likewise, 38% were pessimistic on the outlook for stock market performance in the coming year, compared to 31% last month.

According to the Index, Europe has fallen behind the US in the ranking of the most attractive financial markets. Currently, 42% now rank US markets as most attractive, compared with 33% in January. This contrasts with 31% of EU 5 investors saying they are most optimistic about the prospects for European markets this month, compared with 42% in January.

London, 25 February 2002
UBS AG