Financial Markets and Portfolio Management

, Volume 30, Issue 1, pp 63–94 | Cite as

(Unusual) weather and stock returns—I am not in the mood for mood: further evidence from international markets

  • Nicholas ApergisEmail author
  • Alexandros Gabrielsen
  • Lee A. Smales


This paper investigates the explanatory power of weather variables deviations in two leading international financial trading centres (New York and London) on 58 global stock indices over the period September 2000 to December 2013. The empirical results find that unusual deviations of weather variables from their monthly averages have a statistically significant effect on stock returns across global returns. The paper also attempts to explain these effects through the sales and energy prices mechanisms. The results provide strong support to both mechanisms.


Unusual weather conditions NY and London weather variables International stock markets 

JEL Classification

G10 G15 



The authors wish to express their gratitude to Robert Durand at Curtin University as well as to those in the workshop organized by the Credit Analysis Department at the Sumitomo Mitsui Banking Corporation Europe Limited for their valuable comments and suggestions that enhanced the merit of this work. They also highly appreciate the comments made by two referees of this journal that have substantially contributed to also substantially enhancing the merit of this paper. Needless to say, the usual disclaimer applies.

Supplementary material

11408_2016_262_MOESM1_ESM.docx (34 kb)
Supplementary material 1 (docx 33 KB)


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Copyright information

© Swiss Society for Financial Market Research 2016

Authors and Affiliations

  • Nicholas Apergis
    • 1
    Email author
  • Alexandros Gabrielsen
    • 2
    • 4
  • Lee A. Smales
    • 3
  1. 1.University of PiraeusPiraeusGreece
  2. 2.Sumitomo Mitsui Banking Corporation Europe LimitedLondonUK
  3. 3.Curtin UniversityBentleyAustralia
  4. 4.Credit Suisse, LondonUK

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