For a few weeks, every four years, traders around the world are glued to a different set of screens…
According to an old ECB working paper from 2012, “The Pitch Rather Than The Pit: Investor Inattention During FIFA World Cup Matches,” Michael Ehrmann and David-Jan Jansen tracked trading data from 15 stock exchanges during the 2010 South Africa World Cup.
As Bloomberg’s Sebastian Boyd notes, the number of trades fell by 45% when a national team was playing and volume fell 55%.
Not only that, but events during the match influence trading volumes, which drop by a further 5% after a goal.
National stock markets also decouple from global stock movements because traders aren’t paying attention. So if markets seem to be trading independently of each other over the next few weeks, you’ll know why…
Just a pity that the USA team didn’t make it.
via RSS https://ift.tt/2liFPyz Tyler Durden