The global investor mood brightened in March, especially in North America, according to State Street's monthly gauge of investor confidence.

State Street's Global Investor Confidence Index rose eight points over March to 114.6, as investors across all regions expressed a renewed appetite for risk.

The pick-up in confidence was particularly evident among North American investors as the North American ICI increased from 109.4 to 123.6, the biggest jump in a year.

The Federal Reserve’s cautious stance continues to play into the region's investor confidence and investor confidence globally, and it will be "interesting" to see the ongoing effects of this, noted Kenneth Froot, who developed the index with Paul O’Connell at State Street Associates.

Meanwhile, the European reading increased from 90.2 to 95.3 and the Asian ICI was up marginally from 111.5 to 112.2.

“We have seen a rebound in global sentiment in March after one of the worst starts on record,” said Jessica Donohue, executive vice president and chief innovation officer at State Street Global Exchange. “Oil prices have rallied and market volatility has subsided leading to a renewed enthusiasm for risk.”

The ICI measures investor confidence or risk appetite by analysing actual buying and selling patterns of institutional investors. The latest findings relate to the period ended 29 March.