Investor confidence has waned across the globe, though the setback was most evident in Europe, according to new data.

State Street's Global Investor Confidence Index fell 7.7 points to 98 in July, largely driven by a more sombre mood in Europe where institutional investors were left rattled by the UK's decision to leave the European Union.

The European ICI declined from 100.3 in June to 92.4 this month. Meanwhile, the North American ICI dropped 5.9 points to 99.9 and the Asian ICI fell 5.2 points to 108, still above the critical 100 level. The higher reading in Asia is likely driven by good news in China, where second-quarter economic growth was better than expected.

The ICI, developed by Kenneth Froot and Paul O’Connell at State Street Associates, measures investor confidence or risk appetite by analysing actual buying and selling patterns of institutional investors. The latest findings relate to the period ended 26 July.

“Not surprisingly, risk aversion surged as market participants grappled with the wider implications of Brexit and Turkey’s recent geopolitical turmoil,” said Froot. “Global growth prospects, while being already lackluster, have worsened, and institutional investors responded by putting the accumulation of risky assets on hold.”

“Market participants are only in the first innings of assessing the impact of anti-globalisation measures on economic growth,” said Jessica Donohue, executive vice president and chief innovation officer at State Street Global Exchange. “In Asia, institutional investors were more optimistic, with the ICI reading above.”