(Unusual) weather and stock returns - I am not in the mood for mood: further evidence from international markets

Apergis, N.; Gabrielsen, A.; Smales, Lee

doi:10.1007/s11408-016-0262-z

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Authors

Apergis, N.

Gabrielsen, A.

Smales, Lee

Date

2016

Type

Journal Article

Metadata

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Citation

Apergis, N. and Gabrielsen, A. and Smales, L. 2016. (Unusual) weather and stock returns - I am not in the mood for mood: further evidence from international markets. Financial Markets and Portfolio Management. 30 (1): pp. 63-94.

Source Title

Financial Markets and Portfolio Management

DOI

10.1007/s11408-016-0262-z

ISSN

1934-4554

School

Department of Finance and Banking

URI

http://hdl.handle.net/20.500.11937/29465

Collection

Curtin Research Publications

Abstract

This paper investigates the explanatory power of weather variables deviations in two leading international financial trading centres (New York and London) on 58 global stock indices over the period September 2000 to December 2013. The empirical results find that unusual deviations of weather variables from their monthly averages have a statistically significant effect on stock returns across global returns. The paper also attempts to explain these effects through the sales and energy prices mechanisms. The results provide strong support to both mechanisms.