Weather Effect on Both Us and UK Stock Markets Does Weather Affect Us Versus UK Islamic Equities Returns?

We investigate the weather effect on Islamic stocks in New York and London. Our results highlight that abnormal deviations of weather variables have significant impact, with calendar effect (Monday effect), on studied Dow Jones Islamic Indices and unveiled dynamic lead-lag relationships between weather variables and Islamic market indices. Interestingly, New York cloud-cover and London wind-speed appear to exert significant effect over major studied Dow Jones indices. Furthermore, neural networks model (LSTM) can provide a good forecast for indices. These results support awareness among investors and help them to appropriately evaluate Islamic equities during sudden weather changes