Investor Confidence Declined in October by 0.9 Points to 79.2

Wednesday, October 30, 2019 3:00 pm EDT

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STT
"European investor confidence rose sharply again in October as positive developments in Brexit negotiations and trade war talks sparked large-scale equity purchases in the region"

October 30, 2019 — State Street Corporation (NYSE: STT) today released the results of its  Investor Confidence Index® (ICI) for October  2019.

The Global Investor Confidence Index decreased to 79.2, down 0.9 points from September’s revised reading of 80.1. The decrease in investor sentiment was driven by a 4.3 point drop in the North American ICI to 67.6 and a 1.5 point drop in the Asian ICI to 85.6.  Meanwhile in contrast,  the European ICI increased substantially for the second month in a row, rising from 107.4 to 132.9.

"Even with the stock market reaching new highs, US investor confidence declined further in October,” said Marvin Loh, senior macro strategist, State Street Global Markets. “Despite a more accommodative Fed, deepening geopolitical risks coupled with historically rich equity valuations in the US appear to be having a detrimental  effect on investor sentiment right now.”

“European investor confidence rose sharply again in October as positive developments in Brexit negotiations and trade war talks sparked large-scale equity purchases in the region,” commented Kenneth Froot. “These events have prompted institutions to reduce cash levels; purchasing both equities to capitalize on pro-risk developments, and bonds to capitalize on an increase in yields.”

The Investor Confidence Index was developed by Kenneth Froot and Paul O’Connell at State Street Associates, State Street Global Markets’ 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.

The index is released globally at 10 a.m. Eastern time in Boston on the last Wednesday 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 $32.90 trillion in assets under custody and administration and $2.95 trillion* in assets under management as of September 30, 2019, State Street operates globally in more than 100 geographic markets and employs approximately 40,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $44 billion as of September 30, 2019), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

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The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.  You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
The views expressed in this material are the views of State Street through the period ended October 30, 2019 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 2015 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, October 30, 2019 and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

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Expiration Date: 10/30/2020

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KCDoherty@statestreet.com
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