Inflation, macroeconomy and stock market sentiment: A tale of 2023

This insight series with Probability & Partners delves into contemporary observations and insights, covering topics such as media sentiment in financial markets, advancements in generative AI, and more.

• This first insight focuses on news sentiment surrounding major stock market indices.
• We explore how news sentiment has evolved over 2023 in response to macroeconomic and monetary policy events, particularly in the UK, EU, and US markets.
• By considering quantitative news characteristics such as relevance, novelty, and sentiment, our indicators provide insights into sentiment trends. Aggregating these signals across asset universes allows us to gauge sentiment about major stock markets like the FTSE 100, S&P 500, STOXX 600, NASDAQ 100, and others.