However, investor confidence was down slightly in both North American and Asian markets, according to the results of the State Street Investor Confidence Index for April.
The index measures confidence through analysing buying and selling patterns of institutional investors.
In Europe, the index increased from 94.4 in March to 97.9, while in North America it fell slightly from 91.5 to 91.1.
Professor Ken Froot of Harvard University, who developed the index, said that the rise showed that investor confidence was showing signs of recovery after the very low levels seen in early 2006.
"While certainly below the benchmark highs achieved in 2003, confidence has nevertheless re-established itself in a more normal range," said Professor Froot.
"Investors have continued the pattern established last month, increasing their allocations to risky assets in three of the last four weeks," he added.