Dependency of Main Financial Indexes on Purchasing Manager Index

This study explores how various financial indexes are influenced by the Purchasing Managers' Index (PMI) and other control variables across major global financial markets. The PMI, which indicates economic activity through survey data from purchasing managers, is analyzed for its effect on financial indexes during different periods, including crises. The research aims to determine how the PMI impacts financial indexes under both stable and volatile conditions, highlighting the signaling role of PMI in forecasting market performance. The study covers a 10-year period, examining indices such as RTSI, Nikkei 225, EU 50, S&P 500, FTSE-100, DAX, SSEC, and various PMIs, among others. The findings will provide valuable insights for investors to predict index returns based on PMI values and understand cross-country dependencies.