State Street on Tuesday revealed that as the year comes to a close, investors everywhere are more optimistic and the confidence level was relatively high for the month, which ended a decline in confidence which lasted for 3 consecutive months.
The global investor confidence index, as confirmed by the American financial services firm, managed to rise to 103.9 for the month of December, as compared to the figure of 100.8 for November.
A reading of 100 signifies neutral, but anything above that is a positive indication. Across Asia, investor confidence jumped by 6.3 points, rising to 97.5 from the reading of 91.2 recorded for November.
As per State Street's data shared, confidence has managed to remain mostly constant in other areas with sentiment in Europe falling marginally to 104.6 from November's 104.8. "This month's up-tick in global investor confidence stemmed largely from an improvement in the mood in Asia, where risk appetite rose to an eight-month high.
Elsewhere portfolio reallocations were modest. With three of the four indices over the neutral level of 100, institutions are continuing to add to their risky asset positions, but at a slower pace than was evident earlier in the year", said Harvard Professor Ken Froot, a co-developer of the index.