Relative Stock Market Performance during the Coronavirus Pandemic: Virus vs. Policy Effects in 80 Countries

This paper examines relative stock market performance following the onset of the coronavirus pandemic for a sample of 80 stock markets. Weekly data on coronavirus cases and deaths are employed alongside Oxford indices on each nation’s stringency and government support intensity. The results are broken down both by month and by geographical region. The full sample results show that increased coronavirus cases exert the expected overall effect of worsening relative stock market performance, but with little consistent impact of rising deaths. There is some evidence of significantly negative stock market effects arising from lockdowns as reflected in the Oxford stringency index. There are also positive reactions to government support in March and December in the overall sample—combined with some additional pervasive effects seen in mid-2020 in Latin America.

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Country Financial Risk and Stock Market Performance: The Case of Latin America

SSRN Electronic Journal ◽

10.2139/ssrn.263171 ◽

2001 ◽

Cited By ~ 1

Author(s):

Ephraim Alois Clark ◽

Konstantinos Kassimatis

Keyword(s):

Latin America ◽

Stock Market ◽

Financial Risk ◽

Market Performance ◽

Stock Market Performance

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The Impact of European Uncertainty on the Gulf Cooperation Council Markets

Journal of Heterodox Economics ◽

10.1515/jheec-2017-0003 ◽

2017 ◽

Vol 4 (1) ◽

pp. 37-50

Author(s):

Abdullah Saeed S Alqahtani ◽

Hongbing Ouyang ◽

Adam Ali

Keyword(s):

Stock Market ◽

Stock Markets ◽

Market Performance ◽

Gulf Cooperation Council ◽

Policy Uncertainty ◽

European Policy ◽

Advanced Economy ◽

Stock Market Performance ◽

Uncertainty Index ◽

The Impact

Abstract The interconnectedness of global economies made it inevitable for countries to isolate themselves rather, they partner with each other majorly for economic and political gains. This often at times have a positive and negatives outcomes base on the fact that the more advanced economy tends to cast shadow on the smooth and predictable movement of some markets in the less advanced economy. On this note, it is essential for scholars to relate and determine the impact and the direction of the movement specifically with regards to stock market performance and Economic Policy Uncertainty (EPU), as it concerns the Gulf Cooperation Council (GCC) region and the continent of Europe. Hence, this study investigates the effect of the changes of European Policy Uncertainty index on net oil exporter countries of the GCC stock market performance. Using the Vector Autoregressive (VAR) methodology to estimate the result, the outcome of the result implies that the impact of the changes in European policy uncertainty index on GCC’s stock markets is negative but not significant; the effect of Dollar exchange rate and US 3-month Treasury bill rate is not significant and finally, the effect of Brent Oil price on GCC countries’ stock markets is positive and significant.

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Reconciling Macroeconomic Determinants with Stock Market Performance in Selected Sub-Saharan African Countries: an ARDL Approach

Journal of Banking and Financial Economics ◽

10.7172/2353-6845.jbfe.2020.1.2 ◽

2020 ◽

Vol 1/2020 (13) ◽

pp. 23-39

Author(s):

Kareem Abidemi Arikewuyo ◽

◽

Akeem Adekunle Adeyemi ◽

Eunice Titilayo Omodara ◽

Lateef Adewale Yunusa ◽

...

Keyword(s):

Stock Market ◽

Stock Markets ◽

Stock Price ◽

Market Performance ◽

Sub Saharan Africa ◽

African Countries ◽

Macroeconomic Factors ◽

Stock Market Performance ◽

Sub Saharan ◽

Macroeconomic Determinants

Prior studies have adduced unstable macroeconomic factors to stock price movement overtime but the relationship between the duo remained unsettled. Autoregressive Distributed Lag (ARDL) technique was used to reconcile the macroeconomic determinants with performance of stock markets in selected Sub-Saharan Africa (SSA) covering the period of 1999:1–2017:4. It was found that macroeconomic indicators were essential in determining stock market performance in Nigeria while South African stock market did not show any predictable linkage but the contemporaneous effect of oil price changes on stock market performance in selected SSA. The study, therefore, recommended that countries in SSA should reduce overdependence on oil to minimize external influence in order to promote stability of the stock markets.

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