Global investor confidence rose one point to 108.3 for December from the previous month, a reflection of investors' increasing appetite for risk in 2015, the State Street Investor Confidence index showed.
The increase in the global score was driven by an increase in European and Asian investor confidence. European ICI increased to 103.7 from 96.2 in November and Asian ICI rose to 105.1 from 100.5.
While the global score increased, the North American ICI dropped 5.9 points from November to 106.6.
“U.S. investors have been showing an appetite for risk for much of 2015, but have been increasingly risk averse into year-end as uncertainty about global growth, weak commodity prices and the beginning of the Fed tightening cycle have eroded confidence to take risk,” said Kenneth Froot, founding partner of State Street Associations, the research and advisory services business of State Street Global Exchange, and co-developer of the index, in a news release.
The index is a quantitative measure of global institutional investors' desire for risk by measuring their buying and selling patterns.
The index's neutral score is 100 — investors are neither increasing nor decreasing long-term allocations to risky assets. The index is based on actual trades.