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The impact of events on metal futures based on the perspective of Google Trends

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  • Wei, He
  • Guo, Yaoqi
  • Yu, Zhuling
  • Cheng, Hui

Abstract

The development of behavioral finance theory and the Internet provides the possibility to analyze the impact of events on financial markets from the perspective of investor attention. To this end, this paper analyzes the impact of events on the metal futures market based on Google Trends perspectives using mixed frequency analysis and multifractal methods. Overall, the impact of events can be effectively reflected by investor attention in the metal futures market. Different metals react differently to events. Precious metals are safe havens during financial crises, while industrial metals are not. Earthquakes that occur in countries with large metal supply and demand sensitivities have a more significant impact on metal futures. As the international situation changes, the impact of pirating events on metal futures appears more significant after 2010. If necessary, powerful controls on industrial metals may be needed when events such as earthquakes and piracy occur. When events such as financial crises occur, strong policy measures may be needed to restore balance from the perspective of precious metals.

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  • Wei, He & Guo, Yaoqi & Yu, Zhuling & Cheng, Hui, 2021. "The impact of events on metal futures based on the perspective of Google Trends," Resources Policy, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:jrpoli:v:74:y:2021:i:c:s030142072100297x
    DOI: 10.1016/j.resourpol.2021.102286
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