News events and Price movements international payment systems operational and avoid an imminent financial collapse. Interest rates are lowered, and substantial financial aid is dispensed to protect the industries directly concerned from the worst Markets continue to vibrate for quite some time from the psychological shock of the terrorist attacks. In fact. the financial fallout at the target of the attack, Wall Street, is relatively small in comparison: Stockbroking does not even start on September 1 lth and remains closed for several days, which pre- vents immediate shock reactions. Hardly two months later, and thus much faster than many other international stock exchanges in regions far away from the explosion, the U.S.-indices reach the level they had before the attacks. 4 But most other international indices recover in the medium term as well. It seems as if the serious price losses immediately after the attacks, particularly in Europe, were overreactions triggered by the shock Undoubtedly, it is the incredibility of the events as such" that causes these overreactions. However, it is not physical violence alone that defines the sig- nificance of this world event, but also its psychological multiplication through simultaneous global broadcasting in the mass media. The whole world watching, knowing that the rest of the world is watching. Accordi tions are vehement. Although it is impossible to separate the event itself from its media broadcast- the two are inseparably intertwined -, there is a lot to be said for the fact that the specific quality of the cataclysm is due to its deliber- ate realization as a media event. In view of this, it is appropriate to assume an autonomous share of the media in these(over reactions 1 Introduction a whole industry lives on it: Investment magazines, financial networks and business papers, even the general daily press, convey the impression that in- formation selected and presented by them permits conclusions about future movements of the stock markets The media as well as certain market observ ers seem to maintain that business news circulating in public have a signifi- cant, economically realizable and relevant information content. Some even suppose that business news provoke systematic price movements in the finan-News Events and Price Movements international payment systems operational and avoid an imminent financial collapse. Interest rates are lowered, and substantial financial aid is dispensed to protect the industries directly concerned from the worst.3 Markets continue to vibrate for quite some time from the psychological shock of the terrorist attacks. In fact, the financial fallout at the target of the attack, Wall Street, is relatively small in comparison: Stockbroking does not even start on September 11th and remains closed for several days, which pre￾vents immediate shock reactions. Hardly two months later, and thus much faster than many other international stock exchanges in regions far away from the explosion, the U.S.-indices reach the level they had before the attacks.4 But most other international indices recover in the medium term as well. It seems as if the serious price losses immediately after the attacks, particularly in Europe, were overreactions triggered by the shock. Undoubtedly, it is the incredibility of the events “as such” that causes these overreactions. However, it is not physical violence alone that defines the sig￾nificance of this world event, but also its psychological multiplication through simultaneous global broadcasting in the mass media. The whole world is watching, knowing that the rest of the world is watching. Accordingly, reac￾tions are vehement. Although it is impossible to separate the event itself from its media broadcast – the two are inseparably intertwined –, there is a lot to be said for the fact that the specific quality of the cataclysm is due to its deliber￾ate realization as a media event.5 In view of this, it is appropriate to assume an autonomous share of the media in these (over)reactions. 1. Introduction A whole industry lives on it: Investment magazines, financial networks and business papers, even the general daily press, convey the impression that in￾formation selected and presented by them permits conclusions about future movements of the stock markets. The media as well as certain market observ￾ers seem to maintain that business news circulating in public have a signifi￾cant, economically realizable and relevant information content. Some even suppose that business news provoke systematic price movements in the finan- 4