An Empirical Note on Weather Effects in the Australian Stock Market*

Abstract

The behavioural finance literature posits a link between the weather and equity markets via investor moods. This paper examines the impact of weather on the Australian stock market over the period 1958–2005. A regression‐based approach is employed where daily market returns on the Australian Securities Exchange’s All Ordinaries Price Index are regressed against eight daily weather observations (precipitation, evaporation, relative humidity, maximum and minimum temperatures, hours of bright sunshine, and the speed and direction of the maximum wind gust) at Sydney’s Observatory Hill and Airport meteorological stations. Consistent with studies elsewhere including the Australian market, the results indicate that the weather has absolutely no influence on market returns. Some directions for future research that may help address some of the deficiencies found in this intriguing body of work are provided.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 17 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.