This paper investigates how investor sentiment affects stock market returns and evaluates the predictability power of sentiment indices on U.S. and EU stock market returns. As regards the American example, evidence shows that investor sentiment indices have an economic and statistical...

In this article, we intend to analyse how the European stock markets perceive the dynamics of macroeconomic indicators in terms of the sentiment index and the purchasing managers' index. For this research, we focused on the countries of the European Union and applied an econometric event study,...