Investor Confidence Index Declines to 84.3 in JulyState Street Investor Confidence Index: July 2006 (Graphic: Business Wire)
July 18 2006 - 10:00AM
Business Wire
State Street Global Markets, the investment research and trading
arm of State Street Corporation (NYSE:STT), released today the
results of the State Street Investor Confidence Index(R) for July
2006. According to the July index, investor confidence decreased by
6.2 points to 84.3 from June's revised reading of 90.5. Looking
regionally, the confidence of North American institutional
investors fell from 106.7 to 99.1. The confidence of Asian
investors increased slightly to 81.5 from 80.2, and the confidence
of European investors decreased to 85.4 from 86.5. Developed
through State Street Global Markets' research partnership, State
Street Associates, by Harvard University professor Ken Froot and
State Street Associates Director Paul O'Connell, the State Street
Investor Confidence Index(R) measures investor confidence on a
quantitative basis, analyzing actual buying and selling patterns of
institutional investors. The index is based on financial theory
that assigns precise meaning to changes in investor risk sentiment,
or the willingness of investors to hold proportionally more or less
of their portfolio in equities. The more of their portfolio that
institutional investors are willing to devote to equities, the
greater their risk appetite or confidence. "Over the last several
months, investor confidence has rebounded off new lows set early in
the year," commented Froot. "But this is a long way from saying
that confidence is strong. Professional investors seemed to have
taken the opportunity in the last month, as markets became
relatively less turbulent, to take risk away from their portfolios.
The selling has not been dramatic, but is a reminder that an
improvement in sentiment alone is unlikely to reverse the decline
in equity prices we have seen this year." "This month, it is clear
that most of the action is coming from a decline in the confidence
of North American institutional investors, expressed in buying and
selling decisions," commented O'Connell. "The confidence of Asian
and European investors remains virtually unchanged. U.S. investors
have had to contend with widely varying views of how the Fed and
the U.S. economy will proceed, and this is expressed in the recent
volatility of their confidence levels." Since its launch in
September of 2003, the State Street Investor Confidence Index(R)
has become a key economic indicator for asset owners, investment
managers and central banks. As the only index providing a
quantitative measure tracking the common buying patterns of
institutional investors around the world, the State Street Investor
Confidence Index(R) offers a unique look into the investment
behavior and decisions of thousands of professional investors and
their investment decisions. About State Street Global Markets:
State Street Global Markets provides specialized investment
research and trading in foreign exchange, equities, fixed income
and derivatives. Its goal is to enhance and preserve portfolio
values for asset managers and asset owners. From its unique
position at the crossroads of the global markets, it creates and
unlocks value for its clients with original flow-based research,
innovative portfolio strategies, trade process optimization, and
global connectivity across multiple asset classes and markets.
State Street Global Markets' research team of leading academic and
industry experts is committed to continually advancing the science,
including theory and application of its proprietary investor
behavior research and innovative portfolio & risk management
technologies to help its clients challenge conventional thinking,
shape ideas, make more informed investment decisions and deliver
measurable results. About the State Street Investor Confidence
Index(R): The index is released globally at 10 a.m. Eastern time in
Boston on the second to last Tuesday of each month. More
information on the State Street Investor Confidence Index,
including frequently asked questions and a calendar of release
dates, is available at
http://www.statestreet.com/investorconfidenceindex. The previous
month's calculations for the index are revised to account for
trading activity through the end of the reporting period. About
State Street: State Street Corporation (NYSE: STT) is the world's
leading specialist in providing institutional investors with
investment servicing, investment management and investment research
and trading services. With $10.9 trillion in assets under custody
and $1.5 trillion in assets under management at June 30, 2006,
State Street operates in 26 countries and more than 100 geographic
markets worldwide. For more information, visit State Street's web
site at www.statestreet.com. This news announcement contains
forward-looking statements as defined by United States securities
laws, including statements about the financial outlook and business
environment. Those statements are based on current expectations and
involve a number of risks and uncertainties, including those
related to the pace at which State Street adds new clients or at
which existing clients use additional services, the value of global
and regional financial markets, the pace of cross-border investment
activity, changes in interest rates, the pace of worldwide economic
growth and rates of inflation, the extent of volatility in currency
markets, consolidations among clients and competitors, State
Street's business mix, the dynamics of markets State Street serves,
and State Street's success at integrating and converting
acquisitions into its business. Other important factors that could
cause actual results to differ materially from those indicated by
any forward-looking statements are set forth in State Street's 2005
annual report and subsequent SEC filings. State Street encourages
investors to read the corporation's annual report, particularly the
section on factors that may affect financial results, and its
subsequent SEC filings for additional information with respect to
any forward-looking statements and prior to making any investment
decision. The forward-looking statements contained in this press
release speak only as of the date hereof, July 18, 2006, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
State Street (NYSE:STT)
Historical Stock Chart
From Jun 2024 to Jul 2024
State Street (NYSE:STT)
Historical Stock Chart
From Jul 2023 to Jul 2024