Investor confidence has fallen to its lowest point in nearly two years as institutions retreat further from investing in equities in developed markets. According to an index compiled by State Street, global investor confidence is currently 86.2 – the lowest point it has been since December 2008 when levels fell to 82.8.

The index measures confidence based on the level of global institutional fund managers' allocation to equities, which is seen as a sign of investor risk appetite: the greater the risk appetite, the higher the allocation of equities.