What do Chinese Macro Announcements Tell Us About the World Economy?

Christopher Baum, Alexander Kurov and Marketa Halova ()
Additional contact information
Marketa Halova: Department of Economics, Washington State University
Authors registered in the RePEc Author Service: Marketa Halova Wolfe

No 834, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: We examine the effect of scheduled macroeconomic announcements made by China on world financial and commodity futures markets. All announcements related to Chinese manufacturing and industrial output move stock markets, energy and industrial commodities as well as commodity currencies. News about Chinese domestic consumption leaves most markets unaffected, suggesting that market participants view the announcements primarily as a signal of the state of the global economy rather than merely of China's domestic demand. The market response to unexpectedly strong output announcements is not consistent with investors being concerned about tightening of Chinese macroeconomic policy; instead, the world markets view strong Chinese output as a rising tide that lifts all boats.

Keywords: announcements; China; futures markets; stock markets (search for similar items in EconPapers)
JEL-codes: F44 G14 G15 (search for similar items in EconPapers)
Date: 2013-10-01, Revised 2015-06-01
New Economics Papers: this item is included in nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Forthcoming, Journal of International Money and Finance

Downloads: (external link)
http://fmwww.bc.edu/EC-P/wp834.pdf main text (application/pdf)

Related works:
Journal Article: What do Chinese macro announcements tell us about the world economy? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boc:bocoec:834

Access Statistics for this paper

More papers in Boston College Working Papers in Economics from Boston College Department of Economics Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F Baum ().