State Street has released the results of its latest Investor Confidence Index.

Investor confidence levels worldwide increased in March, according to State Street, against a backdrop of economic uncertainty fuelled by geopolitical headwinds in the US and UK.

State Street's Global Investor Confidence Index swelled 4.2 points to 95.4 in March as investors appeared to set aside concerns over the official Brexit process being triggered. Investor confidence in the US however slumped by 0.3 points to 91.6, perhaps due to various reforms spearheaded by President Donald Trump.

Investor confidence in Europe surged 11.9 points to 95 while State Street's Asian index logged a 5.3-point rise to 109.6.

The financial services giant's Investor Confidence Index was developed by Kenneth Froot and Paul O'Connell. It gauges investor confidence and risk appetite by analysing the buying and selling patterns of institutional investors. 

A reading of 100 is neutral and signals that investors are neither increasing nor decreasing their long-term allocations to risky assets. 

“In the US, significant scepticism remains given the strong run in stocks year-to-date,” said Froot. “Exiting historically low rates is a policy withdrawal investors have not experienced before, therefore it is natural that such an extreme policy is being questioned.” 

Ranjeev Bhargava, managing director and head of investor behaviour research at State Street, added: “Easing of political tensions in [Europe] post Dutch elections, as well as sustained economic momentum on the back of a series of positive economic surprises, seems to have contributed to the more constructive tone from investors.”