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CNI

The ASR/WSJ Composite Newsflow Indicator

  • We monitor the positive and negative news stories around six key macro variables using the Dow Jones news database, Factiva 

  • These variables include: (1) the economy; (2) Corporate earnings; (3) corporate revenues; (4) the labour market; (5) inflation; (6) monetary policy.

  • They combine to form our flagship Composite Newsflow Indicator

  • Long-standing, robust relationships with alternative series like the PMIs

  • Weekly and Monthly series for all datasets

  • 37 years of potential history

  • Coverage: Global; US; China; Eurozone; Japan; UK; Australia ​and Emerging Markets

Rather than rely on two or three macro releases the Newsflow indicators produce a signal by aggregating a much broader range of inputs from the many media outlets contained within Factiva (over 10k different outlets)
Stories tend to be skewed towards the things editors find interesting – which often means that they capture an element of macro surprise
The different indices have strong, long-standing relationships with other key series like the purchasing manager surveys, analyst revisions and the 12-month change in equity/bond relative returns (see chart above). 

 

​On this page:​​

Key CNI component charts

Methodology

CNI_Charts

ASR/WSJ Newsflow Component Indices

Methodology Summary

Methodology

The NewsFlow indicators are created by using proprietary search strings to interrogate the Dow Jones Factiva database 


‘Positive’ and ‘negative’ macroeconomic news stories are collected in separate searches and then the difference is calculated - the ‘net’ news flow. 

 

The indices are then seasonally adjusted.

 

The searches are in English, so the series are dominated by stories from and about the Anglosphere, but they have a proven track record of capturing global trends well.

 

For a more detailed methodology click HERE.

Disclaimer

This research report is issued by Absolute Strategy Research Ltd, which is authorised and regulated by the Financial Conduct Authority (“FCA”). Absolute Strategy Research Services Inc. is registered as an investment adviser with the US SEC, and is responsible for all communications and dealings with, and only with, US persons. The report is intended only for investors who are Eligible Counterparties or Professional Clients, as defined by MIFID and the FCA, and may not be distributed to Retail Clients.
Absolute Strategy Research Ltd does not solicit any action based upon this report, which is not to be construed as an invitation to buy or sell any security.  This report is not intended to provide personal investment advice and it does not take into account the investment objectives, financial situation and the particular needs of any particular person who may read this report. 
This research report provides general information only. The information contained was obtained from sources that we believe to be reliable but we do not guarantee that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are our current opinions as of the original publication date appearing on this material only and the information, including the opinions contained herein, are subject to change without notice. 
This research report may not be redistributed, retransmitted or disclosed in whole or in part, without the express written permission of Absolute Strategy Research Ltd.

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