Either Australia or New Zealand could be on course for a stock market rally next week, depending on which of their rugby teams are crowned Rugby World Cup champions today.
Research from financial information provider Standard & Poor’s Capital IQ shows that the last three winners of the Rugby World Cup all had material increases in their respective markets index in the week following the final.
New Zealand’s S&P/NZX 50 climbed 1.4 per cent after its win in 2011, South Africa’s FTSE SA was up 7.8 per cent in 2007 and England’s FTSE 100 rose 0.5 per cent in 2003.
"What looks to be up for grabs is not only the William Webb Ellis Cup, but also the possibility of earning abnormal economic returns or losses in the following days," said Clive Cooper, vice-president and Pacific head of sales at Standard & Poor's Capital IQ.
The All Blacks are looking to make history at Twickenham by becoming the first team to win back-to-back world cups, but to do so they must beat old rivals Australia. The teams have not met in a final since the tournament’s inception in 1987. – (Reuters)
