The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Thomson Reuters Adds Sentiment Data on Companies to its MarketPsych Indices

Thomson Reuters has added indices covering over 7,500 global companies to its MarketPsych indices, giving investors greater insight into how emotions and perceptions move financial markets, and helping them to define more effective trading strategies.

The company indices add to MarketPsych indices that have been developed by Thomson Reuters in conjunction with MarketPsych, a consultancy specialising in quantitative behavioural economics, since 2012 and cover countries, currencies, commodities and industries.

The company indices provide real-time linguistic and psychological analysis, and convert qualitative indicators, such as fear, performance forecasts and trust in management, into quantitative and actionable insight. Thomson Reuters and MarketPsych use 2 million sources of news and social media from Moreover Technologies, a LexisNexis business, and filter these to produce a pool of 40,000 global news sources and 7,000 social media sites that are used to create the indices. Historical media dates back to 1998.

There are 24 company indices, 14 dedicated to technical issues such as how people talk about price expectations and earnings forecasts, and 10 dedicated to sentiments that are linked to predictive behaviour. These sentiments include anger, gloom, joy, optimism, management trust, urgency, uncertainty and conflict.

Richard Peterson, managing director of MarketPsych, explains: “Now we have numbers behind psychology and concrete evidence that emotions affect how stocks are priced, it is possible to build quantitative models based on sentiment and enhance trading strategies. For example, the management trust index shows that when people are more trusting about a management team, stock declines in price and vice versa, which is the opposite of what you might expect.”

The additional company indices are available immediately as part of the Thomson Reuters MarketPsych Indices feed and are being used for quantitative trading as well as to time asset allocation.

Related content

WEBINAR

Upcoming Webinar: Infrastructure monitoring: mapping technical performance to business performance

Date: 8 July 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes It’s a widely recognized truth that if you can’t measure something, you can’t improve its performance. As high-performance connectivity technologies have established themselves in the mainstream of financial firms’ trading architectures, the ability to monitor messaging and data infrastructures...

BLOG

Talking TradingTech with Andrew Delaney: Is FactSet’s Move to AWS a Market Data Nirvana?

FactSet’s announcement this week of its plan to migrate its real-time ticker plant to Amazon Web Services may represent the boldest statement of intent yet with respect to cloud delivery of market data. And things seem to be accelerating rapidly in this department. Recent weeks have seen SIX launch a strategic partnership with Xignite to...

EVENT

Data Management Summit London

The Data Management Summit Virtual explores how financial institutions are shifting from defensive to offensive data management strategies, to improve operational efficiency and revenue enhancing opportunities. We’ll be putting the business lens on data and deep diving into the data management capabilities needed to deliver on business outcomes.

GUIDE

Regulatory Data Handbook 2019/2020 – Seventh Edition

Welcome to A-Team Group’s best read handbook, the Regulatory Data Handbook, which is now in its seventh edition and continues to grow in terms of the number of regulations covered, the detail of each regulation and the impact that all the rules and regulations will have on data and data management at your institution. This...