Investor Confidence Index Falls from 99.6 to 92.1 in September

    BOSTON, September 18 /CNW/ - 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(R) for
September 2007.

    Global Investor Confidence fell by 7.5 points to a level of 92.1. As with
last month, North American institutional investors were responsible for a
large portion of this global move, as their confidence declined from 117.1 to
106.0. European investors also played a role, as confidence in that region
fell from 86.6 to 82.3. The confidence of Asian institutions showed a small
up-tick, rising by 1.6 points to 86.5.

    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(R) 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.

    "The behavior of institutional investors this past month reflected a
return to more normal liquidity conditions," commented Froot. "In the latter
part of July and the early part of August, institutions accumulated equities
globally as their risk appetite became relatively strong compared with other
market participants who were selling aggressively. This accumulation by
institutions proved worthwhile, as markets rallied steadily from August 16
onwards. In September, institutions were more selective in their purchases,
and this is reflected in the latest confidence reading."

    "Evidence from data on short-sales compiled by State Street Global
Markets is consistent with this view," added O'Connell. "It suggests that,
globally, institutional investors have been a steadying force during the
recent market upheaval."

    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(R):

    The index is released globally at 10 a.m. Eastern time in Boston on the
second to last Tuesday of each month. More information on the State Street
Investor Confidence Index, including frequently asked questions and a calendar
of release dates, is available at The previous month's
calculations for the index are revised to account for trading activity through
the end of the reporting period.

    About State Street:

    State Street Corporation (NYSE:   STT) is the world's leading provider of
financial services to institutional investors including investment servicing,
investment management and investment research and trading. With $13.0 trillion
in assets under custody and $1.9 trillion in assets under management at June
30, 2007, State Street operates in 26 countries and more than 100 geographic
markets worldwide. For more information, visit State Street's web site at

    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 2006 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, September 18, 2007, and the company will not undertake
efforts to revise those forward-looking statements to reflect events after
this date.


For further information:

For further information: State Street Global Markets Steve Maguire, + 1

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