Work detail

Economic Sentiment Indicators in Germany and their Predictive Power for Stock Market

Author: Bc. Robert Flasza
Year: 2009 - summer
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Work type: Bachelors
Language: English
Pages: 45
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Abstract: German economic sentiment indicators (the Ifo, ZEW, PMI and ESIN) are known to improve predictions of the industrial production in Germany. I try to find theoretical background, why these indicators could possibly lead and improve forecasts of the stock market average DAX 30. Subsequently I test the Granger causality and perform out-of-sample forecasts of the DAX 30 by the Ifo and ZEW indicators. The forecasts are then compared.
Downloadable: Bachelor Thesis of Flasza

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