Falling Covid-19 case numbers and a loosening of restrictions boosted investor confidence in February, with the State Street Global Investor Confidence Index (ICI) increasing to 103.9, up 13.9 points from January’s revised reading of 90.0.

This represents a sharp rise, and one of the biggest monthly gains since recovering from lows established in the early months of the pandemic.

The Global Investor Confidence Index increased to 103.9, up 13.9 points from January’s revised reading of 90.0. The increase was led by a 12.6 jump in North American ICI to 106.2 as well as an 8.3 rise in European ICI to 93.9. Asian ICI, meanwhile, fell a modest 0.2 points to 96.9.

Marvin Loh, senior macro strategist at State Street Global Markets, said: “Falling Covid-19 caseloads and relaxed restrictions drove the improving outlook even as the hawkish view for central banks continue in the face of upside inflation surprises. 

“While the index’s movement back above 100 reflects a more constructive view on risk assets, this outlook will be tested in coming months with growing geopolitical concerns and widespread rate hikes across developed markets.”

The numbers do not incorporate the recent Russian invasion of Ukraine, which will likely impact investor confidence for March figures.

The Investor Confidence Index was developed at State Street Associates, State Street Global Markets’s research and advisory services business, in partnership with FDO Partners. It measures investor confidence or risk appetite quantitatively by analysing the actual buying and selling patterns of institutional investors.