scholarly journals Impact of Covid-19 on Interest Rates

2020 ◽  
Vol 1 (1) ◽  
pp. 7-11
Author(s):  
Lo Yi-Wei
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Interest Rates ◽  
Global Economy ◽  
Banking Sector ◽  
Stock Market Index ◽  
Informal Workers ◽  
Market Index ◽  
The Usa ◽  
Economic Stimulus

The global economy is experiencing a crisis due to the Covid-19 pandemic, the stock market index has collapsed. The rupiah exchange rate against the USA dollar weakened this was due to the large number of foreign investors leaving the Indonesian financial market, the stock market plummeted. The banking sector can carry out an economic stimulus given restructuring authority for all credit or financing without requiring restrictions on the credit ceiling or type of debtor, especially debtors for MSMEs and informal workers. The economic stimulus that needs to be maximized is prundential monetary and macro policies through lowering interest rates and maintaining stability in the rupiah exchange rate. Budget relocation is also enforced to maintain the availability of basic foodstuffs for the community, which has increased due to panic buying or market panic. Also providing assistance to increase people's purchasing power.

scholarly journals Is Bitcoin Price Driven by Macro-financial Factors and Liquidity? A Global Consumer Survey Empirical Study

2021 ◽  
Vol 12 (2) ◽  
pp. 399-414
Author(s):  
Shinta Amalina Hazrati Havidz ◽  
Viendya Ervina Karman ◽  
Indra Yudha Mambea
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Generalized Method Of Moments ◽  
Fixed Effect Model ◽  
Stock Market Index ◽  
Internal Factor ◽  
Financial Factors ◽  
Market Index ◽  
Effect Model ◽  
Us Dollar

This research aims to utilize macro-financial and liquidity elements as the factors that may affect the price of Bitcoin as the largest cryptocurrency in terms of market capitalization. The macro-financial factors analyzed in this study were foreign exchange, stock market index, interest rates, and gold, while liquidity ratio is the internal factor. This study applied a fixed-effect model (FEM) and Generalized Method of Moments (GMM) on gathered weekly data from 1 January 2017 to 29 December 2019 from 18 countries with the total of 2,826 observations. The analysis revealed that US Dollar amplifies Bitcoin trading; an increase in interest rate will decrease investors’ intention to invest in Bitcoin as a speculative asset, and gold could replace Bitcoin as a substitute asset. Moreover, Bitcoin was found to be highly liquid, which attracts many investors, while the stock market index proved to be insignificant.

scholarly journals PENGARUH NILAI TUKAR, TINGKAT BUNGA, INFLASI, DAN JUMLAH UANG BEREDAR TERHADAP INDEKS HARGA SAHAM SEKTOR KEUANGAN DI BURSA EFEK INDONESIA (BEI) (Studi Kasus pada Indek Harga Saham Sektor Keuangan Di BEI)

2018 ◽  
Vol 5 (2) ◽  
pp. 1-19
Author(s):  
Amna Mawardi
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Money Supply ◽  
Stock Price ◽  
Price Index ◽  
Financial Sector ◽  
Stock Market Index ◽  
Market Index ◽  
Us Dollar ◽  
Stock Price Index

In the midst of uncertain economic condition, nowadays people tend to secure the potential assests they have, and think how to take advantage of the assets they have in order to keep it high in value for a long period of time. One of the way is by invest in the form of securities traded in the capital market. That is why every investor in the capital market urgently require a relevant informations on trend of transactions as reference in making investment decisions. One of the required information is stock market index. The purpose of this study is to examine the effect 0f macro economic indicators, US Dollar exchange rate, interest rate, inflation rate, and money supply on stock market index in Indonesia Stock Exchange (IDX). The method used in this research is using multiple linear regression. Data obtained from SEKI -  Bank Indonesia (Economic and Financial Statistics - Central Bank of The Republic of Indonesia) and  IDX (Indonesia Stock Exchange), in the form of secondary data of monthly period in year 2011 – 2015, collected by documentation techniniques. The results showed that partially variable of US Dollar exchange rates, interest rates, inflation rates, and money supply have no effect on the stock price index of financial sector. Whereas universally interest rates have a significant positive effect on the stock price index of financial sector. Over all simultaneously US Dollar exchange rates, interest rates, inflation rates, and money supply have an effect on the stock price index of financial sector.   Keywords: exchange rate, interest rate, inflation rate, money supply, and stock market index.

scholarly journals The impacts of Covid-19 pandemic on the smooth transition dynamics of stock market index volatilities for the Four Asian Tigers and Japan

2021 ◽  
Vol 10 (4) ◽  
pp. 183-194
Author(s):  
Day Yang Liu ◽  
Ming Chen Chun ◽  
Yi Kai Su
Keyword(s):  
Stock Market ◽  
South Korea ◽  
Global Economy ◽  
Structural Changes ◽  
Smooth Transition ◽  
Stock Market Volatility ◽  
Stock Market Index ◽  
Market Index ◽  
Transition Functions ◽  
Asian Tigers

This rapid propagation of the Novel Coronavirus Disease (COVID-19) has caused the global healthcare system to break down. The infectious disease originated from East Asia and spread to the world. This unprecedented pandemic further damages the global economy. It seems highly probable that the COVID-19 recession changes stock market volatility. Therefore, this study resorts to the Generalized Autoregressive Conditional Heteroscedastic (GARCH) model with a smooth transition method to capture the influences of the COVID-19 pandemic on the dynamic structure of the stock market index volatilities for some Asian countries (the Four Asian Tigers and Japan). The empirical results show that the shocks of the COVID-19 change the dynamic volatility structure for all stock market indices. Moreover, we acquire the transition function for all stock market index volatilities and find out that most of their regime adjustment processes start following the outbreak of the COVID-19 pandemic in the Four Asian Tigers except South Korea and Japan. Additionally, the estimated transition functions show that the stock market index volatilities contain U-shaped patterns of structural changes. This article also computes the corresponding calendar dates of structure change about dynamic volatility patterns. In the light of estimation of location parameters, we demonstrate that the structure changing the date of stock market index volatility for South Korea and Japan has occurred in late 2019.

scholarly journals ANALISIS PEMBANGUNAN SEKTOR KEUANGAN PADA SEKTOR JASA DI INDONESIA

Media Ekonomi ◽  
2019 ◽  
Vol 26 (1) ◽  
pp. 25
Author(s):  
Dini Hariyanti
Keyword(s):  
Stock Market ◽  
Gross Domestic Product ◽  
Service Sector ◽  
Banking Sector ◽  
Financial Sector ◽  
Domestic Product ◽  
Stock Market Index ◽  
Market Index ◽  
Product Service ◽  
Index Stock

<em>Analyze how Financial Sector Development can affect the Service Sector in Indonesia using the Seemingly Unrelated Regression approach during the 2008-2015 period. <em>This study uses quarterly data in the period 2008.1 - 2015.4. The year 2008 was taken as the beginning of observing the equation model because the period after the global crisis affected the global financial sector. The analysis tool used in this study uses a regression model with the SUR (Seemengly Unrelated Regression) approach. <em>Using the existing model approach, it was concluded that the determinants of the gross national savings model in the service sector in Indonesia were influenced by the stock market index, gross domestic product, and real sector bank loans. The determinants of the banking credit model in the service sector in Indonesia are influenced by variables of the financial sector development index, stock market index, gross domestic product, service sector output, and gross national savings. While in the investment model equation, there are no variables that affect investment in the service sector. This is because there is a time lag in determining investment. Finally, the determinants of the output model in the service sector in Indonesia as well as the banking sector credit equation are influenced by the variables of the banking sector development index, stock market index, gross domestic product, service sector output, and gross national savings.</em></em></em>

scholarly journals Cointegration analysis of stock market index and exchange rate: The case of Serbian economy

2021 ◽  
pp. 59-71
Author(s):  
Milena Marjanović ◽  
Ivan Mihailović ◽  
Ognjen Dimitrijević
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Stock Market Index ◽  
Market Index ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run ◽  
The Exchange Rate ◽  
Adf Test ◽  
Long Run Equilibrium

Since the late 90's, the existence and direction of causality between the capital market and foreign exchange market have attracted significant attention of theoretical and empirical researchers. This is because both of these financial variables have an indisputable role in the development of each country's economy. In this paper we use Johansen procedure and Granger causality test to examine the existence and direction of short-run and long-run dynamics between the leading stock market index BELEX15 and RSD/EUR exchange rate in Serbia. Using ADF test we find that both series are integrated of order one, and since the value of Johansen trace statistics confirmed the existence of cointegration, we have proceeded with estimation of the VECM model. According to our VECM model, the BELEX15 index adjusts to the long-run equilibrium relationship at a rate of 11.72% in each period, while the exchange rate adjusts to the long-run equilibrium relationship at a rate of 2.73%. We also find that there is unidirectional causality and that the market index influences the exchange rate movements in the short-run in terms of Granger.

scholarly journals Economic Interactions among Stock Market Performance and Macroeconomic Variables with Mediating Role of Gold Prices Volatilities: An Evidence from Pakistan

2021 ◽  
Vol 7 (3) ◽  
pp. 383-394
Author(s):  
Rukhsana Rasheed ◽  
Mazhar Nadeem Ishaq ◽  
Rabia Anwar ◽  
Mehwish Shahid
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Market Performance ◽  
Stock Market Index ◽  
Macroeconomic Variables ◽  
Market Index ◽  
Stock Market Performance ◽  
The Impact

In all emerging economies, one of the most challenging issues for investors is the multifaceted inter-relationship between volatility of gold prices and stock market index. During the COVID-19 sub-periods, gold has shown a strong hedging behavior against stock market performance. The main objective of this study was to quantify the long-run relationship among multiple independent macroeconomic variables (predictors) on stock market index (response variable) using the volatilities of gold prices as a mediator factor. This study applied the descriptive statistics, correlation, t-test and OLS multiple regression Model. The specific data comprised of period 2011-2020 regarding the fluctuations in gold prices, exchange rate, interest rate, inflation rate and performance of stock market index has been utilized. The statistical outputs of models showed that exchange rate (Dollar to PKR) was positively affecting the performance of Karachi Stock Exchange (KSE)-100 Index, whereas inflation rate and interest rate were negatively affecting the overall performance of KSE100 index. The findings of this study suggested that to achieve better performance of stock market, relatively low interest rate and inflation rate contribute a significant role. However, to increase the generalization capabilities of this study the impact of mentioned macroeconomic variables in other sectors like industrial production, oil & gas and energy sectors with wider time span can be more helpful.

scholarly journals The Role of Gold Prices and Interest Rate in Stock Index: Insights from Vietnam by Using the Autoregressive Distributed Lag Approach

2020 ◽  
Vol 12 (1) ◽  
pp. 178
Author(s):  
Le Thi Minh Huong ◽  
Phan Minh Trung
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Interest Rates ◽  
Stock Index ◽  
Stock Market Index ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Market Index ◽  
Long Run ◽  
Short Run

This study aimed to determine the impact of domestic gold prices, interest rates in the stock market index (VNI) in Vietnam for the period of January 2009 to December 2018. This study employed the Autoregressive Distributed Lag (ARDL) to check the association of Independent variable gold prices and the interest rate on the dependent variable stock market index. The results show a close correlation together in the long-run. The Vietnam stock index is adversely affected by fluctuations in the credit market in the short-run. We observed that domestic gold prices and interest rates have one-way causal relations to the stock price index. Similarly, interest rates were causal for gold prices and still not yet had any particular direction. The adjustment in the short-run moves the long-run equilibrium, although the change is quite slow.

scholarly journals Effect of Macroeconomic Determinants on Indian Stock Market

2019 ◽  
Vol 8 (2) ◽  
pp. 22-27
Author(s):  
Krishna Gadasandula
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Causality Analysis ◽  
Stock Market Index ◽  
Causality Test ◽  
Macroeconomic Variables ◽  
Bank Rate ◽  
Market Index ◽  
Long Run ◽  
Indian Stock Market

Stock market is one of the important forms of investment. The prices of stock markets are affected by much macro-economic factors. The study investigates the relationships between the Indian stock market index (NSE Nifty) and four macroeconomic variables, namely, GDP, Inflation, Exchange Rate and Bank Rate. The data is collected on a quarterly basis for the time period March 2000 to December 2017. The study employs the Johansen’s co-integration approach to the long-run equilibrium relationship between stock market index and macroeconomic variables. For causality analysis, the study carried out Granger and Geweke causality tests. From this paper it is observed that the Granger causality test results do not demonstrate the presence of any bidirectional causality. The results show the unidirectional causal associations running from GDP to Inflation, Bank Rate to GDP, Exchange Rate to GDP, NIFTY Index to GDP, Exchange Rate to Inflation, NIFTY Index to Inflation, and Bank Rate to NIFTY Index. Apart from that, the results also show no causal association between Inflation and Bank Rate, Bank Rate and Exchange Rate, and Exchange Rate and NIFTY Index. However, the bidirectional causal associations appear. When we look into the results of Geweke causality analysis shows that bidirectional causal associations exist between Inflation and Bank Rate, and Exchange Rate and Nifty Index.

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