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Global investor confidence up in April, led by Europe: State Street index

GLOBAL investor confidence rose in April, with the biggest jump coming from Europe, according to the latest data from State Street Global Exchange.

Its Global Investor Confidence Index (ICI) increased to 114.5, an increase of three points from the revised reading of 111.5 in March, as regions across the world showed an increased appetite for risk.

The European index went up 8.9 points to 110.9, while the North American ICI increased by 3.2 points to 112.3.

The Asian Index was up 3.1 points to 112.7.

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State Street's index measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors. The greater the percentage allocation to equities, the higher risk appetite or confidence.

A reading of 100 is neutral, meaning that it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets.

The index differs from survey-based measures as it is based on the actual trades, as opposed to opinions, of institutional investors.

The index was developed by Kenneth Froot and Paul O'Connell at State Street Associates, State Street Global Exchange's research and advisory services business.

Mr Froot said: "The April numbers came together with a general sense of cohesion among institutional investors and their confidence in risky assets.

"It appears that growing risk appetite echoes the strong start to the Q1 earnings season, even amid the recent challenges of heightened volatility and trade war fears," he added.