State Street : Investor Confidence Falls in January by 1.7 Points to 108.8

State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for January 2016.

The Global ICI decreased to 108.8, down 1.7 points from December's revised reading of 110.5. The decline in sentiment was driven by a decrease in the North American ICI from 110.5 to 108.8 along with the Asian ICI falling 1.5 points to 102.9, and the European ICI falling 0.1 points to 103.4.

The Investor Confidence Index was developed by Kenneth Froot and Paul O'Connell at State Street Associates, State Street Global Exchange's research and advisory services business. 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.

'We have seen an unprecedented slide in stock markets around the globe,' commented Jessica Donohue, executive vice president and chief innovation officer, State Street Global Exchange. 'Tumbling oil prices, a reaction to slowing demand in the face of a supply glut, and changing growth dynamics in China chipped away at investors' confidence over the past month.'

'Fears around weakening Chinese growth and the collapse in oil markets has caused institutional investors to believe the additional spending released into the hands of consumers in non-commodity producing country makes even this steep and sudden downdraft a buying opportunity,' commented Ken Froot. 'Perhaps 2016 will be a happy new year after all.'

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/ideas/investor-confidence-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 $27.3 trillion in assets under custody and administration and $2.2 trillion* in assets under management as of September 30, 2015, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street's website at www.statestreet.com.

* Assets under management include approximately $25 billion as of September 30, 2015, for which State Street Global Markets, LLC, an affiliate of SSGA, serves as the distribution agent.

The views expressed in this material are the views of State Street through the period ended January 26, 2016 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 2014 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, 2016 and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.