Investor Confidence Index Rises from 65.8 to 68.8 in January
January 22 2008 - 10:01AM
Business Wire
State Street Global Markets, the investment research and trading
arm of State Street Corporation (NYSE:STT), today released the
results of the State Street Investor Confidence Index� for January
2008. Global Investor Confidence rose by 3.0 points from a revised
December level of 65.8 to reach 68.8. North American investors were
responsible for the bulk of this, as evidenced in the rise in the
North American Confidence Index from 65.3 to 71.8, but European
investors also contributed with an increase in risk appetite from
85.0 to 86.6. Among Asian investors, confidence retreated slightly
from 85.6 to 85.4. 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 measures
investor confidence on a quantitative basis by analyzing the actual
buying and selling patterns of institutional investors. The index
is based on financial theory that assigns precise meaning to
changes in investor risk appetite, or the willingness of investors
to allocate their portfolios to equities. The more of their
portfolio that institutional investors are willing to devote to
equities, the greater their risk appetite or confidence. �After
last month�s steep decline, the fourth in a row, this month risk
appetite rebounded somewhat among institutional investors,�
commented Froot. �Interestingly, this increase occurred against a
backdrop of declining market prices, including a decline in US
equity markets of 7.75 percent. The numbers indicate that, at these
price levels, institutional investors are prepared to provide
liquidity to other market participants such as retail investors and
the leveraged community.� �The confidence of institutional
investors in both North America and Europe stabilized through the
month, in a pattern echoed by US consumer confidence,� added
O�Connell. �While institutions continue to be tentative about
deploying risk, our underlying data shows that sectors such as
healthcare, utilities, consumer staples are benefiting from the
improvement in risk appetite, albeit from very low levels.� January
Results � Global 68.8 N. America 71.8 Europe 86.6 Asia-Pacific 85.4
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�: 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 provider of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $15.3 trillion in assets
under custody and $2 trillion in assets under management at
December 31, 2007, 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 2006
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, January 22, 2008, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
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