Vontobel Monetary News

Connecting decision makers to a dynamic network of data, people and ideas, Bloomberg shortly and precisely delivers business and financial info, news and perception all over the world. Additionally it is possible that the direction of causality between information and financial indicators changes in time, but such a change was troublesome to detect in our knowledge because of the limited length of the time sequence. Market evaluation, monetary evaluation, financial forecasts and funding strategies; preserve updated on the Belgian and world markets in only a few clicks.

Uncover our numerous investment strategies by sector and monitor how the latest developments on the global markets via the watchful eyes of our experts. We display that the NCI is very correlated with the volatility of the primary US and EU inventory market indices, particularly their historical volatility and VIX (the implied volatility of the S&P500).

It can be defined as any set of circumstances that pose a risk to the steadiness of the financial system and have the potential to provoke a monetary crisis 27 We hypothesise that the cohesiveness of financial news partially reflects this systemic risk. Motivated by latest monetary crises, important research efforts have been put into finding out contagion effects and herding behaviour in financial markets.

Figure 3 shows probably the most frequent entities in each of the semantic partitions as decided based on the information corpus collected over the analysed interval. A lot much less has been stated relating to the influence of economic information on financial markets. To satisfy the first prerequisite, in our evaluation, we rely on financial information paperwork which might be extracted by a novel text-stream processing pipeline, NewStream ( ), from a lot of Net sources.

To assess the NCI’s utility as a financial market indicator, we use correlation analysis and Granger causality tests in opposition to the set of various financial market indicators. The NCI-financial correlations with financial market volatility indices are a lot stronger in comparison with the GSQ classes correlations with volatility measures with R < 0.3.="" in="" distinction="" with="" the="" nci-monetary,="" the="" gsq="" classes="" exhibit="" stronger="" correlations="" with="" inventory="" market="" volumes="" (zero.three="">< r="">< zero.four).>

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