Global investor confidence is accelerating this month as investors begin looking "more favourably" on risky assets, according to the State Street Investor Confidence Index.
After a record low in December, State Street says global confidence climbed more than 12 points to 60.3 in January with European confidence also up seven points.
However, it says the rebound in confidence in North America was the most striking change, with a jump of more than 20 points to 51. According to State Street, recent policy actions in the US may have calmed investor fears.
"The move up in global investor confidence this month is the largest we have seen since August 2007," says Harvard University professor Ken Froot.
"This is perhaps not surprising, with the Index having registered a record low in December. While institutions looked more favorably on risky assets this month than they did at any time in the fourth quarter of 2008, it remains to be seen whether these reallocations represent changes in long-term convictions about the value of those assets."
The State Street Investor Confidence Index measures investor confidence by analysing the buying and selling patterns of institutional investors. The more of their portfolio devoted to equities, the greater their risk appetite or confidence.
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