The State Street Investor Confidence Index, which measures institutional investors’ appetite for risky assets, rose to 104.4 this month, an eight-point jump from November, according to a news release from State Street Global Markets.
December marked the second month in a row that the index showed growing investor interest in equities, with a reading of more than 100 pointing to an increase in allocations to that relatively high-risk asset class. In November, the index jumped 8.2 points from the month before to 96.4.
For 2010, the index peaked in March at 107.4 before trending lower for much of the second and third quarters.
According to the news release, investors’ appetite for risky assets rose in North America and Asia in December, but declined in Europe. In North America, confidence rose 7.7 points to 103.1, with a 7.4-point rise to 102.9 in Asia. Amid continued economic turmoil in Europe, however, confidence among institutional investors dropped 10.8 points to 99 from November’s reading.