The global ICI jumped 7.2 points from July’s revised reading of 115.6 with the Asian ICI increasing from 92.1 to 101.7 and the European ICI increasing six points to 127.7.
North American sentiment saw a decrease, however, with the index falling one point to 110.3.
The global ICI measures risk appetite by analysing the buying and selling patterns of institutional investors.
State Street Global Exchange's senior managing director and head of research and advisory services, Jessica Donohue, said despite a bout of risk aversion driven by geopolitical tensions in early August, global institutional confidence remains resilient.
“With benign developed market inflation, institutions may be positioning for continued accommodative policy from central banks,” said Ms Donohue.
State Street Associates director Paul O'Connell said the impending targeted longer-term financing operations, a lack of inflationary pressures across the eurozone, and the potential for more unconventional easing from the European Central Bank may have boosted European sentiment.
“Moreover, resilient Chinese growth has reduced fears of a hard landing and helped boost Asian sentiment,” said Mr O’Connell.
“With Chinese inflation running at low levels, the People’s Bank of China may also have further room to stimulate the economy.”
