BOSTON -State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for January 2014. 

The Global ICI rose to 114.4 in January, up 18.6 points from December's revised reading of 95.8. The reading was the largest in over four years and was driven by a sharp increase in North American sentiment from 92.1 to 113.6 along with increases in both European and Asian sentiment.  European sentiment rose to 112.6 from December's revised reading of 107.5.  Sentiment in Asia rose to 103.5 from 97.7.

The Investor Confidence Index was developed by State Street Associates, State Street Global Exchange's research and advisory services business, and Harvard University professor Kenneth Froot. It measures investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors. The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.

"Policy uncertainty was reduced in the US and confidence was boosted by optimism over the Fed's policy of forward guidance, which may help anchor low interest rates going forward," commented Jessica Donohue, senior managing director and head of research and advisory services, State Street Global Exchange. "It will be critical to see how sentiment holds up during the debt ceiling debate given the renewed concerns over emerging market growth."

"In Europe, stronger economic fundamentals and looser monetary policy led to improved sentiment," added Froot. "Easier financing conditions for peripheral European sovereigns and speculation for more unconventional measures by the ECB, given below target inflation, has led to broader optimism among institutional investors."

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/index.html.

About State Street Corporation

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 $27.4 trillion in assets under custody and administration and $2.3 trillion in assets under management* at December 31, 2013, State Street operates in more than 100 geographic markets worldwide, including the U.S., Canada, Europe, the Middle East and Asia. For more information, visit State Street's web site at www.statestreet.com.

* This AUM includes the assets of the SPDR Gold Trust (approx. $31 billion as of December 31, 2013), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent.

The views expressed in this material are the views of State Street through the period ended January 28, 2014 and are subject to change based on market and other conditions.

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 2013 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 28, 2014, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

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