Soccer World Cup Effect On Stock Markets and Its Trading Application

Discussion in 'Trading' started by Li Ka Shing, Jun 5, 2006.

  1. Hi,

    The 2006 soccer world cup is coming. It's one of the biggest sporting events on earth, and the biggest mood alterant involving sports.

    Here is a research paper on the effect of world cup matches on stock markets, courtesy of Journal Of Finance:

    - losing country see a drop in stock index the next trading day
    - winning teams no effect
    - small cap indices drop more as they are mostly domestic investors
    - top 7 soccer countries see more pronounced effect (Brazil, Argentina, UK, France, Germany, Italy, Spain) although all have effect
    - loss resulting in team elimination see more effect

    More info just read the article it's pretty interesting.

    Here is the schedule of the world cup matches if you're interested (for trading aid purpose) :