Little work has been done to characterize the empirical effects of political events on financial markets. In this paper we attempt to measure the impact of political risk on asset prices, focusing on the Hong Kong equity market. Hong Kong serves as the ideal case study, for two reasons: the...

Little work has been done to characterize the empirical effects of political events on financial markets. In this paper we attempt to measure the impact of political risk on asset prices, focusing on the Hong Kong equity market. Hong Kong serves as the ideal case study, for two reasons: the...

This study tests the popular claim that the DJIA's movements around key reference points affect “investor sentiment” and thus price behavior. It is found that the DJIA's rise and fall is indeed restrained by “support” and “resistance” levels at multiples of 100 (e.g., 2800, 2900,...