The State Street Investor Confidence Index rose 3.6 points in July 10 119.4, up from 115.8 in June.

The biggest jump was in Europe, where the index jumped 8.7 points from 95.9 to 104.6, followed by North America, where the index rose 6.7 points from 113.8 to 120.5. Confidence was rather tempered in Asia, where the index rose 1.9 points to 94.2.

The index tracks the buying and selling patterns of institutional investors, looking for increases in equity exposure.

“The index results strongly reflect increasing investor strategies designed with a view that the global recession will wane more rapidly than many had feared,” said Harvard University Professor Ken Froot, who helped State Street develop the index. “In fact, this is the highest level the index has reached since mid 2004. That is an impressive turnaround over last October, when the index reached its lower-ever-recorded level of 82.1.”

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