The Impact of Business and Political News on the GCC Stock Markets
CESifo, Munich, 2018
CESifo Working Paper No. 7353
![](https://cesifo.org/DocImg/cesifo1_wp7353.jpg?c=1689237045)
This paper investigates the impact of business and political news on stock market returns in the Gulf Cooperation Council (GCC) countries. For this purpose, it employs a Markov switching model including a separate index for each of the two categories of news considered. The results indicate the importance of news as drivers of GCC stock returns, with business news playing a more substantial role; further, news released in the largest financial markets in the regions are found to have significant cross-border effects.
Monetary Policy and International Finance
Empirical and Theoretical Methods