THE IMPACT OF CORONAVIRUS ON FINANCIAL MARKETS OF DEVELOPED COUNTRIES
Student, Shandong University
According to the World Health Organization, tens of millions of confirmed cases and hundreds of thousands of confirmed deaths have been registered worldwide. COVID-19, a kind of coronavirus, has emerged as one of the most serious dangers to the global economy and financial markets in human history. The Covid-19 virusâ€™s introduction has caused a global reduction in economic activity, perhaps posing new dangers to financial stability. This study aims to look into and reveal the effect of coronavirus on two financial markets. Ten advanced countriesâ€™ capital market and money market data with the time interval from March 2020 to November 2020 has been used in this study. Six indices of these financial market Shares, Mutual Funds, Treasury Bills, Certificates of Deposits, Bonds, and Mortgages worked as samples. The research has been conducted on advanced nations USA, Norway, Canada, Germany, Ireland, Sweden, Singapore, Netherlands, Australia, and Switzerland. Panel Regression Analysis, Spearmanâ€™s rank correlation, and ANOVA are used to estimate the study results. The scholar constructs a weekly panel data of COVID-19 confirmed cases and financial market indices. The second purpose is to calculate the Risk on the six chosen indices of these markets. COVAR methodology is used to measure the risks among capital market and money markets indices. Interestingly, this research noticed that all financial markets impacted by the coronavirus while the capital market has recorded maximum fluctuations and the stock market show minimum volatility. The final results give a detailed understanding of financial market indices. It will support future research on other money and Capital markets indices and investors after the Coronavirus period.
Keywords: Coronavirus, Financial Markets, COVAR, COVID-19 Confirmed Cases. Capital Market. Money Market, Developed economies
Journal Name :
EPRA International Journal of Economics, Business and Management Studies (EBMS)
Published on : 2021-07-20