Equity risk appetite at historic lows

LONDON (Reuters) - Risk appetite among equity investors is at its lowest level in at least 16 years, according to investment bank UBS, which also registered similar patterns in fixed income and foreign exchange.

In its weekly note on risk, released late on Monday, UBS said its in-house equity indicator touched minus 4.90, where zero means a balance between risk appetite and aversion. It was the lowest in the indicator's 16-year history.

"The last time risk aversion got near this level was in October 1998 with a reading of -4.40," UBS said. "Back then, it took five months before the index returned to risk seeking territory."

The index is based on market moves and conditions in the previous week and would not have included Monday's global stock market tumbles.

UBS said its fixed income risk index "took a large upward lurch" into territory conducive to risk averse investors. The FX indicator was also at high risk averse levels.