Boston, January 26, 2010 – 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 2010. 

Globally, Investor Confidence rose fractionally by 0.2 points to 104.5 from a revised December level of 104.3. The mood was upbeat in North America, where confidence showed an increase of 4.4 points over December’s reading of 103.5 to settle at 107.9. In Europe, by contrast, institutional investors were more wary, and their confidence fell 5.6 points to 98.9 from the December level of 104.5. Amongst Asian institutional investors, confidence rose slightly to 98.1 from a level of 97.5 in December.

Developed through State Street Global Markets’ research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates 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. It is not a survey, but rather fact-based. The index is based on a financial theory that assigns precise meaning to changes in investor risk appetite. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.

“Institutional investors had a number of competing claims on their attention this month,” commented Froot. “Impressive growth numbers out of China for 2009 buttress anecdotal evidence that expansion continues apace there, lending a positive tone to a number of asset classes. At the same time, there is some evidence that while activity has picked up to a substantial degree in the developed markets, the recent pace of improvement may be difficult to sustain, all the more so against a backdrop of uncertainty around monetary policy and regulatory change more generally.”

“The divergence between North American and European confidence this month reflects some of the underlying fundamentals,” added O’Connell. “While there have been some mildly positive data surprises in Europe, there is continued concern about the way forward in addressing the fiscal difficulties of a number of the periphery economies, and this has dulled investor enthusiasm. The improvement in Asian sentiment brings the Index for that region back to its September 2008 level.”

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 last Tuesday of each month. More information on the State Street Investor Confidence Index is available at http://www.statestreet.com/investorconfidenceindex. 

About State Street
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management, and investment research and trading. With $18.8 trillion in assets under custody and administration and $1.9 trillion in assets under management at December 31, 2009, State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street 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 set forth in State Street's 2008 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 26, 2010, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.