European inflation and Spanish Stock Market

This study examines the short-run response of daily stock prices in the Spanish market to the announcements of inflation news at a sector level at the moments when the Spanish authorities announce the IPC (consumer price index) during the period 1995-2004. The study also incorporates two novel expla...

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Detalles Bibliográficos
Autores: Jareño Cebrián, Francisco, Navarro, Eliseo
Tipo de recurso: artículo
Fecha de publicación:2016
País:España
Institución:Universidad de Castilla-La Mancha
Repositorio:RUIdeRA. Repositorio Institucional de la UCLM
OAI Identifier:oai:ruidera.uclm.es:10578/10537
Acceso en línea:http://hdl.handle.net/10578/10537
Access Level:acceso abierto
Palabra clave:Inflation announcement
Stock return
Core inflation
Harmonized index of consumer prices (HICP)
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spelling European inflation and Spanish Stock MarketJareño Cebrián, FranciscoNavarro, EliseoInflation announcementStock returnCore inflationHarmonized index of consumer prices (HICP)This study examines the short-run response of daily stock prices in the Spanish market to the announcements of inflation news at a sector level at the moments when the Spanish authorities announce the IPC (consumer price index) during the period 1995-2004. The study also incorporates two novel explanatory variables: core inflation and “non-core” inflation rate components on the one hand, and the spread between the Spanish and European inflation rates (harmonized) on the other hand. Conclusions of the study: the “non-core” component of the inflation rate, which is more volatile, has negative effects on some sector returns; additionally, in drawing too far apart from the European inflation rate, the Spanish inflation rate negatively affects sector returns, such as in the “Consumer Goods” sector, which is subject to strong foreign competition. In the long-term analysis, the lagged core inflation (structural component) negatively affects sector returns.Cambridge University Press201620162016info:eu-repo/semantics/articleapplication/pdfapplication/pdfhttp://hdl.handle.net/10578/10537reponame:RUIdeRA. Repositorio Institucional de la UCLMinstname:Universidad de Castilla-La ManchaInglésinfo:eu-repo/semantics/openAccessoai:ruidera.uclm.es:10578/105372026-05-27T07:36:41Z
dc.title.none.fl_str_mv European inflation and Spanish Stock Market
title European inflation and Spanish Stock Market
spellingShingle European inflation and Spanish Stock Market
Jareño Cebrián, Francisco
Inflation announcement
Stock return
Core inflation
Harmonized index of consumer prices (HICP)
title_short European inflation and Spanish Stock Market
title_full European inflation and Spanish Stock Market
title_fullStr European inflation and Spanish Stock Market
title_full_unstemmed European inflation and Spanish Stock Market
title_sort European inflation and Spanish Stock Market
dc.creator.none.fl_str_mv Jareño Cebrián, Francisco
Navarro, Eliseo
author Jareño Cebrián, Francisco
author_facet Jareño Cebrián, Francisco
Navarro, Eliseo
author_role author
author2 Navarro, Eliseo
author2_role author
dc.subject.none.fl_str_mv Inflation announcement
Stock return
Core inflation
Harmonized index of consumer prices (HICP)
topic Inflation announcement
Stock return
Core inflation
Harmonized index of consumer prices (HICP)
description This study examines the short-run response of daily stock prices in the Spanish market to the announcements of inflation news at a sector level at the moments when the Spanish authorities announce the IPC (consumer price index) during the period 1995-2004. The study also incorporates two novel explanatory variables: core inflation and “non-core” inflation rate components on the one hand, and the spread between the Spanish and European inflation rates (harmonized) on the other hand. Conclusions of the study: the “non-core” component of the inflation rate, which is more volatile, has negative effects on some sector returns; additionally, in drawing too far apart from the European inflation rate, the Spanish inflation rate negatively affects sector returns, such as in the “Consumer Goods” sector, which is subject to strong foreign competition. In the long-term analysis, the lagged core inflation (structural component) negatively affects sector returns.
publishDate 2016
dc.date.none.fl_str_mv 2016
2016
2016
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/10578/10537
url http://hdl.handle.net/10578/10537
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Cambridge University Press
publisher.none.fl_str_mv Cambridge University Press
dc.source.none.fl_str_mv reponame:RUIdeRA. Repositorio Institucional de la UCLM
instname:Universidad de Castilla-La Mancha
instname_str Universidad de Castilla-La Mancha
reponame_str RUIdeRA. Repositorio Institucional de la UCLM
collection RUIdeRA. Repositorio Institucional de la UCLM
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,300724

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