The new Westpac Private Wealth survey shows that affluent Australians are warming up to the Australian equity and property markets following rate cuts in the US and locally.

The investor sentiment index for the quarter was 14.7 on a scale of minus 50 to 50, rising from 10.8 in the previous quarter and 4.8 in the first quarter of the year. The result is based on a survey of 17,000 Australians with an investment portfolio worth $1 million or more, excluding superannuation and their principal place of residence.

The investment index was reported to be 5.4, increasing from 0.2 in Q2 2019. Since the start of 2018, it had been flat or negative.

The investment property sentiment index improved from minus 29.8 in the second quarter to minus 16.9, although still in negative territory.

In addition to interest rate cuts in Australia and the US, signs of residential property price increases domestically prompted a more positive outlook for equity and land.

Despite the quarter-on-quarter rise in optimism, wealthy investors remained worried about global market volatility and instability arising from international trade tensions.

Nearly half (49.7 percent) of the respondents said their investment and savings decisions were affected by the trade war between the US and China and expectations for a positive resolution.