The biggest regional drop was Europe, with the index falling by 15 points to 95.6. The North America index fell 2.9 points to 67.8.
For the Asia-Pacific region, the confidence reading improved by 8.7 points to 94.5, State Street said in a news release.
"As the concerns over COVID-19 moved from China to Europe, the Investor Confidence index has reflected this shift," said Lee Ferridge, head of multiasset strategy, Americas at State Street Global Markets, in the news release. "Rapidly growing case numbers in Europe pushed sentiment down by a marked 15 points, back below the neutral line of 100 for the first time since August."
The index measures investor confidence or risk appetite by analyzing buying and selling patterns, with a greater allocation to equities indicating higher confidence. A reading of 100 means investors are not changing their long-term allocations to risky assets.