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Are BRICs Markets equally exposed to Trump’s agenda

Author

Listed:
  • Jamal Bouoiyour

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

  • Refk Selmi

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

There is no doubt that politicians exert a significant impact on stock markets. The evolving financial market volatility over the United States presidential election is a prime example of how elections have an impact on financial markets. This study assessed whether BRICS stock markets were equally vulnerable to Trump’s agenda using event-study methodology and regression-based intention votes over a period of 120 days toward the final election result on 08 November 2016. It was shown that although Trump’s win had a negative effect on some markets, it had a positive effect on others. It had the most adverse impact on China together with Brazil. Although not to the same degree as these two countries, India and South Africa were also affected negatively. These adverse reactions can be explained by Trump’s neo-mercantilist attitude, which involves cancelling trade deals and instituting tariffs. However, the effects on Russia appear to be positive due to the expectations about the easing of sanctions imposed on Russia because of the Russian role in the conflict of Ukraine.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jamal Bouoiyour & Refk Selmi, 2018. "Are BRICs Markets equally exposed to Trump’s agenda," Post-Print hal-01879666, HAL.
    • Handle: RePEc:hal:journl:hal-01879666
    DOI: 10.11130/jei.2018.33.2.1203
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    Cited by:

    1. Refk Selmi & Jamal Bouoiyour, 2020. "The financial costs of political uncertainty: Evidence from the 2016 US presidential elections," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(2), pages 166-185, May.
    2. Delia DiaconaÅŸu & Seyed Mehdian & Ovidiu Stoica, 2023. "The Global Stock Market Reactions to the 2016 U.S. Presidential Election," SAGE Open, , vol. 13(2), pages 21582440231, June.
    3. P. K. Mishra & S. K. Mishra, 2022. "Is the Impact of COVID-19 Significant in Determining Equity Market Integration? Insights from BRICS Economies," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(2), pages 137-162, May.
    4. Jamal Bouoiyour & Refk Selmi, 2018. "The gruesome murder of Jamal Khashoggi : Saudi Arabia's new economy dream at risk ?," Working Papers hal-01965085, HAL.
    5. Paritosh Chandra Sinha, 2021. "Attention to the Election-Economics-Politics (EEP) Nexus in the Indian Stock Markets," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 13(1), pages 7-32, June.

    More about this item

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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