Investor Confidence Index Rises from 80.9 to 81.4 in June
BOSTON, MA -- 06/17/2008

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 June 2008.

Global Investor Confidence rose by 0.5 points to 81.4 from a revised May level of 80.9. Looking regionally, the confidence of North American institutional investors increased slightly from 83.5 to 85.2. European investor confidence rose more significantly from 73.4 to 81.6. The confidence of Asian investors fell by 5.8 points to 79.4.

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.

"While not quite as big as the bounce seen after August 2007, this month's increase is important," commented Froot. "In spite of the distinct sources of risk that we see - energy prices, inflation in the US and other developed countries, rapidly weakening real estate markets, and global real economic slowdown, institutional investors overall are cautiously finding value at current price levels. While sentiment, particularly in the US remains low, it is now well above the all-time low points the index has witnessed in the last year."

"European confidence is stronger this month, perhaps reflecting that the ECB is likely take a more pragmatic role in responding to the elevated levels of inflation that plague Europe," added O'Connell. "The situation in Asia, however, is quite a bit more pessimistic. For the first time since the scare of early 2006, Asian investors are processing the choice between more currency adjustment or greater inflation over the coming year. Neither is going to be easy -- it's a timely and sobering reckoning that is taking place."

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, June 17, 2008, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.
 
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