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Global investor confidence declined in October, led by gloomier U.S. and Canadian institutional investors, according to State Street Corp.’s latest index reading.

The Boston-based firm reported that its Global Investor Confidence Index (ICI) decreased 0.9 points in October to 79.2, which was driven by a 4.3-point drop in the North American ICI and a 1.5-point drop in the Asian ICI.

Conversely, the European index increased substantially for the second month in a row, it said.

“Even with the stock market reaching new highs, U.S. investor confidence declined further in October,” said Marvin Loh, senior macro strategist with State Street Global Markets.

“Despite a more accommodative Fed, deepening geopolitical risks coupled with historically rich equity valuations in the U.S. appear to be having a detrimental effect on investor sentiment right now,” he added.

The increase in confidence for Europe followed positive developments in the Brexit negotiations and the global trade picture, State Street said.