Monday 14 May 2012

Media sentiment predicts eurozone collapse

Some recent findings regarding media sentiment. As I already pointed out earlier in our Dow Jones PR blog, there are astonishing parallels between the media talking about a possible eurozone break-up and the Spanish yield curves.
We searched for the terms euro/eurozone break-up/collapse and related words. The result was a peak in early December 2011, prior to a critical EU summit in Brussels. The outcome of the meeting (and the ECB) were calming the markets in the following weeks, but now it appears that the fear about the euro is back.
It's visible on today's spike in the Spanish bond yields - most-watched as the battle for Spain likely decides the fate of the single currency.
Mentions of "Euro Break-up" were already raising to a new year high in the last week. 683 documents referred to it, according to data collected from Factiva. And it seems to be just the beginning.

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