The State Street Investor Confidence Index rose 4.2 points to 95.4 in March, with February's index level revised downward to 91.2. The rise in the confidence of global institutional investors was driven by a sharp increase in the European component, which rose 11.9 points to 95. The Asian component also rose, increasing by 5.3 points to 109.6, but the North American sub-index fell by 0.3 points to 91.6.
State Street said the return of European investor confidence after a sharp decline in February was due to an easing of political tensions following the Dutch elections, as well as as sustained economic momentum on the back of positive economic surprises in the region. The stalling of U.S. investor confidence, on the other hand, shows understandable caution given the strong run-up in stocks and the simultaneous exit from historically low rates, which has not been experienced before.