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Economic News and International Stock Market Co-movement
REVIEW OF FINANCE, no. 3 (2009): 401-465
Abstract
We analyze the effects that real-time domestic and foreign news about fundamentals have on the co-movement between stock returns of a small, open economy, Portugal, and a large economy, the United States. Consistent with our theoretical model, we find that US macroeconomic news and Portuguese earnings news do not affect stock market co-mo...More
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