Current opinion: 2022 Vol: 23 Issue: 6S
Tao Wu, Southwest Jiaotong University
Citation Information: Wu, T. (2022). The impact of covid?19 pandemic on international stock markets: come, volatility, and dangerous state likelihood dynamics. Journal of Economics and Economic Education Research, 23(S6), 1-2.
In late 2019, a replacement virus known as “COVID 19” had began to unfold, inflicting “severe respiratory disorder.” Thus, this virus semiconductor diode to a rare rate of death between the senior and therefore the most vulnerable in society, resulting in a world social distancing and residential isolation of quite two billion individuals worldwide, with tremendous social, political and economic consequences. Moreover, one in every of the business effects of this virus was associate degree surprising disruptions within the flow of products and services, artefact costs and monetary conditions, making associate degree economic disasters across several countries attributable to its impact on the assembly and provide chains in China, the us, Europe, and Japan, in addition because the most vital economies within the world.
International stock markets, Likelihood Dynamics, COVID?19 Pandemic.
The principal objective of the present study is to look at the results of capitalist sentiment and mood (positive and negative) on major stock markets throughout the COVID-19 pandemic. though a major body of empirical work examines capitalist sentiment driven by COVID-19, these studies tend to focus solely on negative capitalist sentiment. Hence, the present study contributes to the prevailing literature by examining the impact of each negative and positive sentiments because of COVID-19 on stock markets ( Bouri et al., 2021).
Behavioral finance studies show that investors’ emotions and anxiety have an effect on their investment selections available markets; this finding is said to the mood sensitivity hypothesis. However, a haul arises in measurement emotions or capitalist sentiments as a result of these can not be discovered directly. As such, many proxies are thought of in measurement capitalist sentiments within the literature. Since the work of the Google Search Volume Index (GSVI) knowledge are used often within the literature to live capitalist interest or sentiment. as an example, Barber and Odean noted that the net has become an important tool for investors shopping for and mercantilism selections in monetary markets( Mukhopadhyay, 2022).
Hence, the net offers investors a significant platform on that they'll access comprehensive data for investment decision-making. If an online search question is taken into account a sign of direct interest, checking out data on a selected topic on the net may be a clear indication of associate degree individual’s interest within the topic. steered that investors tend to take a position in corporations that attract their attention in monetary markets. what is {more} it indicated that the GSVI knowledge enable U.S.A. to establish capitalist attention more quickly, as discovered throughout the world pandemic. additionally, Costola stressed that the GSVI knowledge will with success gauge capitalist attention throughout episodes of diseases, like the center East metastasis syndrome, chickenpox, and flu ( Nomran & Haron, 2021).
Numerous studies have shown that web search volumes may be used as a proxy for capitalist sentiment, lightness vital relationships between capitalist sentiment and investment selections in monetary markets what is more, the results of capitalist sentiment on exchange returns are extensively examined within the literature ( Zaremba et al., 2021).
Significant changes within the monetary structures of states was caused by the “domino impact” created by retrenched investors in several countries This contagion effect within the international market semiconductor diode to unexampled distressing effects in several economies that were solely appreciate Depression of 1920 what is more, all the countries face an excellent health crisis, severe external demand shock, dramatic shrinking in international monetary conditions, and a plunge within the artefact costs that may have a severe impact on economic activity in artefact exporters (In addition, the natural event of COVID?19 has been declared as a worldwide pandemic on June, 2020 by the globe Health Organization (WHO), that jolted the world monetary markets. As of June sixteen, 2020, there square measure nine,653, 048 confirmed cases and 491,128 deaths across the globe for 216 Countries, areas or territories with cases, together with rising and developed countries.
Following such a large worldwide crisis, the literature on the economic effects of COVID?19 has emerged quickly in recent months. Alternative studies have examined however the natural event of COVID?19 affected the monetary contagion in monetary markets however the COVID?19 amount has affected the monetary contagion between China and G7 countries and show that stocks listed across China and G7 countries are related to a major increase in conditional correlations between their stock returns. Systematically show shut dependence between S&P five hundred index returns and each understood volatility and understood correlation throughout the COVID?19 amount.
Bouri, E., Demirer, R., Gupta, R., & Nel, J. (2021). COVID-19 pandemic and investor herding in international stock markets. Risks, 9(9), 168.
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Mukhopadhyay, D. (2022). Economic contagion of covid-19 pandemic on international stock markets: a study based on cointegration approach with selected countries . Vision, 09722629221087375
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Nomran, N.M., & Haron, R. (2021). The impact of COVID-19 pandemic on Islamic versus conventional stock markets: international evidence from financial markets. Future Business Journal, 7(1), 1-16.
Indexed at, Google scholar, Cross Ref
Zaremba, A., Kizys, R., Tzouvanas, P., Aharon, D. Y., & Demir, E. (2021). The quest for multidimensional financial immunity to the COVID-19 pandemic: Evidence from international stock markets. Journal of International Financial Markets, Institutions and Money, 71, 101284
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Received: 02-Dec-2022, Manuscript No. JEEER-22-13055; Editor assigned: 04-Dec-2022, PreQC No JEEER-22-13055(PQ); Reviewed: 18-Dec-2022, QC No. JEEER-22-13055; Revised: 21-Dec-2022, Manuscript No. JEEER-22-13055(R); Published: 28-Dec-2022