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Trader Attention and Market Reaction to Fundamental News: Evidence From Natural Gas Futures

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines the effect of trader attention on the response of the natural gas market to weekly US Energy Information Administration announcements regarding changes in natural gas inventories. We find that lower trader attention hinders price discovery in the natural gas futures market. Based on our daily regression estimates, the market responds 74% weaker to inventory announcements released on Fridays, compared to those released on Thursdays. We attribute the findings to lower trader attention in the natural gas market on Fridays compared to other weekdays. The results remain robust after controlling for the withdrawal and injection seasons in the natural gas market.

Original languageEnglish (US)
Pages (from-to)1171-1181
Number of pages11
JournalJournal of Futures Markets
Volume46
Issue number7
DOIs
StatePublished - Jul 2026

Bibliographical note

Publisher Copyright:
© 2026 Wiley Periodicals LLC.

Keywords

  • attention
  • inventory announcements
  • market reaction
  • natural gas futures

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