Investors are dipping their toes back into shares as global stock markets show signs of stabilising.

According to a poll by Reuters of investment houses in the US, Europe and Japan, investors worldwide boosted their holdings in stocks for the second consecutive month in December.

On average, those with a mixed-asset portfolio raised their exposure to shares to 56%, up from 54.8% last month.

The increase in equity holdings came as investors retreated from government bonds, which had been considered a safe haven amid the recent turmoil. Tumbling yields from bonds have now pushed investors back towards riskier assets although holdings in bonds remain higher than the long-term average.

World stocks have rallied by almost a fifth from the five-year low they hit on 21 November as governments rolled out fiscal stimulus packages to boost ailing economies.

In Britain, fund managers increased stocks to an average of 63% of their portfolios, with bonds accounting for just 22.7%.