The UK's investor appetite grew further this month as concerns surrounding China's economy simmered, according to a monthly survey.

Investor confidence has continued to gain momentum in November, according to a survey of 4,503 UK adults by Lloyds Private Banking.

Investor sentiment towards emerging market equities, Japanese equities and commodities jumped significantly in the last month, increasing overall investor confidence by 4 percentage points. This took the average of all asset classes in November to 11 per cent, the highest point since August.

The pick-up comes amid perceptions of increased stability in China, driven by policy interventions by the Chinese Central Bank, which combined interest rate cuts with reductions in banks’ reserve-requirement ratios to lower corporate financing costs and pump liquidity into the economy. 

The surge in optimism was also down to the US Federal Reserve explaining that they were holding interest rates due to global weakening of growth, rather than any inherent problems with the US economy. This helped push the second month-on-month improvement in US equities.

In fact, UK property was the only asset class to see a fall in sentiment but even this was a marginal dip of 0.84 percentage points, and could be attributed to a small slowdown after the busier summer months.

“It is encouraging to see increasing investor sentiment this month, which is mainly thanks to more stability and less uncertainty in the big global economies of the US, the eurozone, China and Japan. Positive policy interventions from central banks are helping to provide strong performances for many asset classes at the moment,” said Ashish Misra, head of portfolio specialists at Lloyds Bank Private Banking.

“However, the currently ongoing third-quarter results season has returned focus onto earnings growth and expectations. How these expectations evolve in the short term will have an impact on how sustainable any continued improvements will be.”