Financial news is information about the stock market and securities, such as bonds. It is usually published by newspapers, magazines and online media. It can also be found on TV and radio. Financial news is often used by investment advisers, who use it to advise their clients. It is also important for investors to follow, because it can help them understand market trends. However, investors should be careful not to get caught up in day to day financial news. Jack Bogle has argued that it can be harmful to invest too much money in companies based on the quarterly reports and other news.
The Financial Times (FT) is an English-language daily business newspaper founded in 1888. It is based in London and covers international economics, politics and finance with analysis and opinion. It was founded as the Financial Guide and competed with the rival Financial News for over a century, until a merger in 1945. The paper is known for its Lex column, a set of analyses and opinions that sets the agenda for global economy and finance. It also contains companies and markets news, Life & Arts, FT Magazine, technology articles and a weekly weekend edition titled FT Weekend.
Many studies establish Granger causality between media coverage and stock market performance, but separating reactions to the media reporting from those to the underlying new information is difficult. This paper uses a novel dataset and identification strategy to show that an article in the FT increases the intraday volatility of a firm’s stock price. The effect is largely explained by an increase in trading volume.
About the Author
