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Google search volumes and the financial markets during the COVID-19 outbreak

Author

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  • Costola, Michele
  • Iacopini, Matteo
  • Santagiustina, Carlo R.M.A.

Abstract

During the outbreak of the COVID-19, concerns related to the severity of the pandemic have played a prominent role in investment decisions. In this paper, we analyze the relationship between public attention and the financial markets using search engine data from Google Trends. Our findings show that search query volumes in Italy, Germany, France, Great Britain, Spain, and the United States are connected with stock markets. The Italian Google Trends index is found to be the main driver of all the considered markets. Furthermore, the country-specific market impacts of COVID-19-related concerns closely follow the Italian lockdown process.

Suggested Citation

  • Costola, Michele & Iacopini, Matteo & Santagiustina, Carlo R.M.A., 2021. "Google search volumes and the financial markets during the COVID-19 outbreak," Finance Research Letters, Elsevier, vol. 42(C).
    • Handle: RePEc:eee:finlet:v:42:y:2021:i:c:s1544612320316986
    DOI: 10.1016/j.frl.2020.101884
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    2. Diaz-Balteiro, L. & Alfranca, O. & Voces, R. & Soliño, M., 2023. "Using google search patterns to explain the demand for wild edible mushrooms," Forest Policy and Economics, Elsevier, vol. 152(C).
    3. Li, Sufang & Xu, Qiufan & Lv, Yixue & Yuan, Di, 2022. "Public attention, oil and gold markets during the COVID-19: Evidence from time-frequency analysis," Resources Policy, Elsevier, vol. 78(C).
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    7. Iyer, Subramanian Rama & Simkins, Betty J., 2022. "COVID-19 and the Economy: Summary of research and future directions," Finance Research Letters, Elsevier, vol. 47(PB).
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    More about this item

    Keywords

    COVID-19; Financial Markets; Google Trends;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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