Interesting IMF article on how news affect market sentiments. Bullish or Bearish. Global news are more important than local news (local news involve only news in one country). The article discovers that text-mining techniques of economics and finance news identify positive terms such as 'gains,' 'recovery' and negative ones such as 'crisis' and 'decline.' Daily texts from selected sources are collected and an Index constructed.
I co-authored an article with Assoc. Prof. Dr. Noor Zahirah Mohd Sidek, UiTM Kedah, on this issue. If you are interested in the preprint version, leave comments below.
Pic. IMF Calculations
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