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England results 'affect shares'

The hopes of a proud footballing nation rest on the shoulders of Wayne Rooney and his team-mates and so to it would seem does the expectations of stock market investors.

As Fabio Capello's England squad prepares for their South African World Cup campaign stockbrokers will be watching closely.

A study has revealed that the success or failure of the team at the World Cup is likely to have a significant impact on the London stock market.

The day following a defeat or draw for the national side can result in drops for the blue-chip index, while a win can have a positive effect on shares.

Academics from the Universities of Bangor, Leeds and Newcastle studied the FTSE 100 index the day after 290 England international football matches between 1984 and 2009.

It was found the largest gains and falls in the stock market happened after tournament games such as the World Cup.

Slightly lower share price gains and losses were noticed after friendly and qualifying matches.

The effect of international sporting results on stock markets was well documented and often attributed to the psychological effects of the result, said researchers.

Professor Robert Hudson, from Newcastle University Business School, said: "Stockbrokers, like everyone else, can be carried away in the depression associated with an England loss at the World Cup."

An early England exit in South Africa could have negative business effects on the alcohol, media, leisure and sportswear industries, the report added.

Copyright © Press Association 2010

All articles are copyright The Press Association 2010. News articles provided by The Press Association for Family Investments. Whilst every care it taken to ensure accuracy of editorial content, Family Investments takes no responsibility for any errors or omissions. The views expressed in these articles are not necessarily those of Family Investments.

  

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Important Information: The contents of this website must not be interpreted as financial advice. You should not rely on the comments and views expressed within this site. Your own individual circumstances should always be considered. If you have any doubts regarding financial matters you should seek advice from a suitably qualified professional. See our Terms and Conditions for more information. Site last reviewed and updated 02/09/10.