A decline in North American sentiment has seen the Global Investor Confidence Index (ICI) fall to 114.7 in July, down 4.6 points from June.
The State Street Global Exchange released the results of the global ICI for July 2014, which said North American sentiment had fallen from 116.1 to 110.3.
A drop in Asian sentiment also contributed, dropping from 96.2 in June to 92.1 in July.
"While valuation concerns in the US markets and rising geopolitical risk have dampened sentiment in July, North American confidence still remains relatively upbeat," senior managing director and head of research and advisory services Jessica Donohue said.
"Institutions appear to be in a wait-and-see mode this summer as they contemplate the future path of Federal Reserve monetary policy."
Research and advisory services business and Harvard University professor Kenneth Froot said escalating geopolitical tensions may have contributed to lower Asian investor sentiment.
"It will be interesting to see if continued growth in China and political reform in select Asian countries, including India and Indonesia, lead to stronger sentiment going forward," Froot said.
On the other hand European sentiment stood to 121.2, up from June's revised reading of 113.7.
"Stronger growth metrics in Europe and the UK and well received ECB policy actions helped boost European confidence, which reached the strongest level since May of 2007," Froot said.
