State Street Global Investor Confidence Index (ICI) for June 2016 decreased to 105.9, down 0.1 points compared to May’s revised reading of 106.
The data, which considered 22 June 2016 as the cut off date and did not account for the 24 June Brexit decision, revealed that the European ICI recorded a 3.5 point rise to 100.3 before the EU referendum.
The ICI dropped by two points in June to 105.9 in North America, while in Asia it increased to 113.4 from 112.3.
State Street Global Markets senior managing director and head of global macro strategy Michael Metcalfe said: "The confidence of European investors rose in June, ahead of the UK’s EU referendum. This helps to explain why markets have moved so wildly following the vote to Leave. Investors’ were not reducing risk sufficiently ahead of the vote."
The ICI was developed by Kenneth Froot and Paul O’Connell at State Street Associates, State Street Global Exchange’s research and advisory services business.
The index has been designed to help measure investor confidence or risk appetite quantitatively by evaluating the actual buying and selling patterns of institutional investors.