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The Response Of Financial Market Indices To Covid-19 Pandemic

Author

Listed:
  • SATTAR, Muhammad Atif

    (Department of Management and Economics, Kunming University of Science and Technology, Kunming, China.)

  • ARCILLA Jr., Felix E.

    (College of Arts and Sciences, Saint Michael College of Caraga, Philippines.)

  • SATTAR, Muhammad Fahad

    (Department of Management and Economics, Kunming University of Science and Technology, Kunming, China.)

Abstract

Indices are a crucial part of the global investment business. The main objective of the study is to determine the impact of COVID-19 on stock indices to analyse financial markets' response. The study applied a log-log simple regression model to analyse the effects of COVID-19 on stock indices by using EVIEWS. The result shows that COVID-19 has a substantial negative impression on market indices. In addition, critical analysis findings are benchmark index like the S&P 500, and Dow Jones Industrial Average has plummeted. On the other hand, indices like FTSE 100, NIKKEI 225, NASDAQ 100, SSE 50, DAX, HENG SENG, MOEX.ME and SENSEX have shown a negative percentage change. Moreover, Global stock markets have posted the biggest fall since the 2008 financial crises. It was recommended that future researchers should conduct different stock indices and sample period, the impact of COVID-19 on economic factors like GDP, inflation, interest rate, and effects of COVID-19 on credit markets.

Suggested Citation

  • SATTAR, Muhammad Atif & ARCILLA Jr., Felix E. & SATTAR, Muhammad Fahad, 2020. "The Response Of Financial Market Indices To Covid-19 Pandemic," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 24(3), pages 83-92, September.
    • Handle: RePEc:vls:finstu:v:24:y:2020:i:3:p:83-92
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    References listed on IDEAS

    as
    1. Maria Demertzis & André Sapir & Simone Tagliapietra & Guntram B. Wolff, 2020. "An effective economic response to the Coronavirus in Europe," Policy Contributions 35323, Bruegel.
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    More about this item

    Keywords

    Response; financial market indices; COVID-19; pandemic; China Pages: 83-92;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G19 - Financial Economics - - General Financial Markets - - - Other

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