When EU Leaders Speak, the Markets Listen

59 Pages Posted: 3 Aug 2012 Last revised: 27 Aug 2013

See all articles by Tomasz Piotr Wisniewski

Tomasz Piotr Wisniewski

Open University, UK

Andrea Moro

Cranfield University - School of Management

Date Written: August 2, 2012


We use content analysis software to examine certain characteristics of communications arising from European Council meetings. These characteristics appear to explain a large proportion of variation in stock returns around the meeting dates. More specifically, stock market investors react favorably when the conclusions and declarations issued by heads of states convey a positive sentiment and demonstrate a stance of moral rectitude. On the other hand, the returns tend to be negative when the communications are obfuscated by an excessive use of abstract words and fixated on regional rather than global issues.

Keywords: Political Effects, European Council, Stock Markets, Content Analysis

JEL Classification: F50, G12, G14, G15

Suggested Citation

Wisniewski, Tomasz Piotr and Moro, Andrea, When EU Leaders Speak, the Markets Listen (August 2, 2012). Available at SSRN: https://ssrn.com/abstract=2122553 or http://dx.doi.org/10.2139/ssrn.2122553

Tomasz Piotr Wisniewski (Contact Author)

Open University, UK ( email )

Walton Hall
Milton Keynes, Buckinghamshire MK7 6AA
United Kingdom

Andrea Moro

Cranfield University - School of Management ( email )

Bedfordshire, MK43 0AL
United Kingdom

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