State Street Global Markets' Investor Confidence Index showed a slight increase in global investor confidence in July.

The ICI was developed by Harvard University professor Kenneth Froot and State Street Associate's Paul O'Connell. The index measures risk appetite and investor confidence by measuring their buying and selling patterns each month. The higher percentage of allocations to equities signifies a higher confidence or risk appetite.

Overall, global ICI increased 0.7 points to 94.0 from June's reading of 93.3. A slight decline was seen in both North American (-0.6) and European (-0.5) ICI, while Asian ICI improved 0.8 points, now resting at 91.0.

"Although there was a small uptick in Asian investor confidence this month, on a relative basis, the Index for that region remains the most bearish, 9.0 poi­nts below the neutral level of 100," O'Connell said.

As Froot pointed out in a press release, the July sample ended just before the latest round of policy pronouncements from Europe, making it hard to determine whether the policy moves will have a meaningful impact on risk appetite and investor sentiment.

Kylie Hennagin writes for Financial Planning.