Investor confidence increased slightly this month, to 82.5 from 80.7 in September, according to State Street Global Markets' State Street Investor Confidence index. North American institutional investor confidence rose to 94.4 for October from 92.8 last month, while Asian investor confidence increased to 94.2 from 90.7 and European investor confidence rose to 96.2 from 88.9.
"This month saw a partial resolution of the tension ... between news of a slowdown in U.S. property and declining commodity prices," said Ken Froot, Harvard University professor and index developer. "The tiebreaker was the continued strength in third-quarter corporate earnings, which gave investors encouragement with respect to medium-term growth forecasts."
The index measures changes in investor risk sentiment and is based on aggregate equity transaction data from mid-September to mid-October.