Investor Confidence Index Rises from 102.6 to 108.0 in March

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Boston, March 30, 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

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for March 2010. 

Globally, Investor Confidence rose 5.4 points to 108.0 from February's revised reading of 102.6. The driving force this month was provided by Asian institutional investors, whose confidence rose 4.1 points from February’s revised reading of 96.7 to 100.8. Elsewhere the changes were more muted. North American investor confidence ticked up slightly to 110.4 from a revised February number of 110.1. In Europe, confidence remained somewhat on the back foot, declining from 97.3 from February’s reading of 99.8.

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 Indexmeasures investor confidence on a quantitative basis 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 is risk appetite or confidence It is based on actual trades rather than survey data, and as a result it captures the sentiment of institutional investors with unique precision.

“This month saw a solid increase in investor confidence, with Asian institutional investors leading the way,” commented Froot. “As we anticipated, the increase in the discount rate by the US Federal Reserve in February seems to have been largely priced-in by institutions. Now that concerns about the European periphery have been assuaged somewhat, investors are focused on the continuing improvement in the macroeconomic outlook, and what it implies for equity valuations.”
"Interestingly, we are starting to see a renewed divergence between investor confidence and consumer confidence in the US with consumers becoming less confident while investors are becoming more confident,” added O’Connell. “It remains to be seen whether consumers will look up this month, but in the meantime, institutional investors worldwide have been consistent buyers in many markets and sectors, with the exception of the European periphery and some specific sectors such as healthcare.”

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

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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 atwww.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 2009 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, March 30, 2010, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

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