Thursday, April 5, 2007

TABE Luncheon, Thursday, April 5, 2007

The Impact of Economic News on Financial Markets

John Parker, Principal, Relevant Economics

It is not news that news moves financial markets. In the past, research into the impact of economic announcements on financial markets has used surveys of economists to gauge market sentiment. The extent to which the actual number differs from the survey is taken as the news component that drives markets following the announcement. Recently two developments have occurred that have allowed us to quantify how much, when, and in what direction financial markets move in response to news. Firstly, economic derivatives, auctions of derivatives on economic releases allow us to get a much better read on market sentiment than comes from surveys. Secondly real-time financial markets data has allowed the effect of the announcement to be isolated and separated from other influences.

John Parker will present his research on the impact of economic news on financial markets using economic derivatives and real-time financial data. He will answer questions such as: which economic announcements move markets most; which markets respond most quickly; do good news and bad news have asymmetric effects; and, do data revisions matter?

John has an M.Phil. from Oxford, a B.A. from UWO and 25 years experience as an economist, in the fields of energy markets, financial markets, and business forecasting. His experience in financial markets includes working at the central bank and a risk management software company.

Location: BMO Boardroom, 21^st Floor, 1 First Canadian Place, Toronto

Date: Thursday, April 5th, 2007

Time: 12 noon to 2 p.m.

Cost: TABE and CABE members in good standing $25, Others $45. A light lunch will be available.

PLEASE USE THE WEB SITE FOR REGISTRATIONS www.cabe.ca/chapters/TABE . Only if absolutely necessary, to register, you can call 905-845-3102 or E-Mail tabe@cabe.ca. Registration closes 2 p.m. Tuesday, April 3rd.

Members (only) may pay cash or cheque at the door, non-members and credit card payments (VISA, Diners/EnRoute, MasterCard, or American Express) are to be prepaid VIA THE WEB SITE. No-shows will be invoiced. Charges include GST. (TABE GST number: R124389990)

Meeting arranged by Paul Ferley