Short Term Stress of Covid-19 on World Major Stock Indices
Künye
Rehan, M., Alvi, J., & Karaca, S. S. (2022). Short term stress of COVID-19 on world major stock indices. Asia-Pacific Financial Markets, 1-42.Özet
The main objective of this study is to check the short-term stress of COVID-19
pandemic on the American, European, Asian, and Pacifc stock market indices and
furthermore the correlation between all the stock markets during the pandemic.
Secondary data of 41 stock exchange from 32 countries have been collected from
investing.com website from 1st July 2019 to 14th May 2020 for the stock market
and the COVID-19 data has been collected according to the frst cases reported in
the country, stocks market are classifed either developed or emerging economy, further divided according to the subcontinent i.e. America, Europe, and Pacifc/Asia,
the main focus in the data is the report of frst COVID-19 cases. The study reveals
that there is volatility in the all the 41 stock market (American, Europe, Asia, and
Pacifc) after reporting of the frst case and volatility increase with the increase of
COVID-19 cases, moreover, there is a signifcant negative relationship between the
number of COVID-19 cases and 41 major stock indices of American, Europe, Asia
and Pacifc, European subcontinent market found more efected from the COVID-19
than another subcontinent, there is Clustering efect of COVID-19 on all the stock
market except American’s stock market due to smart capital investing.