01813cas a2200241 a 4500 AALejournalIMF008082 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451964974 1018-5941 BD-DhAAL BD-DhAAL Sadeghi, Mahdi. Stock Market Response to Unexpected Macroeconomic News : The Australian Evidence / Mahdi Sadeghi. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper provides empirical evidence on the relationship between unexpected changes in macroeconomic variables and Australian stock returns over the period 1980-1991. The results suggest that stock returns are positively correlated with any surprise news in the current account deficit, the exchange rate and growth rate of real GDP, and negatively correlated with surprise news about the inflation rate and interest rates. Stock returns are also positively correlated with the unexpected unemployment rate and negatively correlated to revisions in the expected unemployment rate. The results furthermore suggest that market portfolios can detect the impact of common economic shocks better than the portfolios of the two main subsectors of the market. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/061 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/061/001.1992.issue-061-en.xml IMF e-Library