What Moved Share Prices in the Nineteenth‐Century London Stock Market?

33 Pages Posted: 19 Jan 2018

See all articles by Gareth Campbell

Gareth Campbell

Queen's University Belfast - Queen's Management School; Queen's University Belfast

William Quinn

Queen's University Belfast

John D. Turner

Queen's University Belfast; Queen's University Belfast - Queen's Management School

Qing Ye

Xi'an Jiaotong-Liverpool University (XJTLU)

Date Written: February 2018

Abstract

Using a new weekly blue‐chip index, this article investigates the causes of stock price movements on the London market between 1823 and 1870. We find that economic fundamentals explain about 15 per cent of weekly and 34 per cent of monthly variation in share prices. Contemporary press reporting from the London Stock Exchange is used to ascertain what market participants thought was causing the largest movements on the market. The vast majority of large movements were attributed by the press to geopolitical, monetary, railway‐sector, and financial‐crisis news. Investigating the stock price changes on an independent list of events reaffirms these findings, suggesting that the most important specific events that moved markets were wars involving European powers.

Suggested Citation

Campbell, Gareth and Quinn, William and Turner, John D. and Ye, Qing, What Moved Share Prices in the Nineteenth‐Century London Stock Market? (February 2018). The Economic History Review, Vol. 71, Issue 1, pp. 157-189, 2018, Available at SSRN: https://ssrn.com/abstract=3104998 or http://dx.doi.org/10.1111/ehr.12429

Gareth Campbell (Contact Author)

Queen's University Belfast - Queen's Management School

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

Queen's University Belfast ( email )

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

William Quinn

Queen's University Belfast ( email )

25 University Square
Belfast, BT7 1NN
Ireland

John D. Turner

Queen's University Belfast ( email )

David Leir Building
Belfast BT7 1NN, BT9 5AG
Ireland

Queen's University Belfast - Queen's Management School

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

Qing Ye

Xi'an Jiaotong-Liverpool University (XJTLU) ( email )

111 Renai Road, SIP
Suzhou, JiangSu province 215123
China

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