Investor Confidence Index Declines from 54.5 to 48.0 in December
December 23 2008 - 10:00AM
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 December
2008. Global Investor Confidence decreased by 6.5 points to 48.0
from November�s revised level of 54.5. Confidence among North
American investors fell particularly sharply, from November�s
revised reading of 45.3 to 30.1. European investors were slightly
less pessimistic, but their confidence still declined to 67.4 from
a revised level of 72.5 in November. Institutional investors in
Asia bucked the trend, as their confidence rose from 82.2 to 86.1.
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. �Having
taken a pause in November, investor confidence resumed its sharp
decline this month, and we witnessed some of the largest
reallocations away from risky assets that we have recorded over the
last decade,� commented Froot. �The selling was relatively
broad-based throughout the month, though it did abate in the final
days before December 17th, the cutoff for this month�s measurement
sample. Institutions, it seems, continue to have some trepidation
about whether recent policy moves will be enough to forestall
deflation and a pronounced economic slow-down in 2009.� �Since
October 31st, our quantitative measures show that institutional
investors have been deleveraging roughly two out of every three
days, with North American institutions leading the way,� added
O�Connell. �The most recent decline in confidence is somewhat
surprising, as it occurs against the backdrop of modest gains in
equity prices over the period. This suggests that institutional
investors may be on the side of providing liquidity to other market
participants whose risk appetite has improved somewhat.� December
Results Global 48.0 N. America 30.1 Europe 67.4 Asia-Pacific 86.1
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 $14 trillion in assets under
custody and $1.7 trillion in assets under management at September
30, 2008, 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 2007 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, December 23, 2008, 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