COVID and World Stock Markets: A Comprehensive Discussion

Abstract

The COVID-19 outbreak has disturbed the victims' economic conditions and posed a significant threat to economies worldwide and their respective financial markets. The majority of the world stock markets have suffered losses in the trillions of dollars, and international financial institutions were forced to reduce their forecasted growth for 2020 and the years to come. The current research deals with the impact of the COVID-19 pandemic on the global stock markets. It has focused on the contingent effects of previous and current pandemics on the financial markets. It has also elaborated on the pandemic impact on diverse pillars of the economy. Irrespective of all these destructive effects of the pandemic, still hopes are there for a sharp rise and speedy improvement in global stock markets' performance.

COVID-19 and tourism sector stock price in Spain: medium-term relationship through dynamic regression models

“…All the studies analyzed the initial effect of the pandemic; the most widely used methodologies include event studies (Ganie et al 2022;He et al 2020;Huo and Qiu 2020;Hung et al 2021;Jabeen et al 2022;Liu et al 2020;Ofori-Boateng et al 2021), panel data regression (Amin et al 2021;Mdaghri et al 2020;Topaloglu et al 2021) and classic regression models (Ahmed 2020;Ahmed et al 2021;Schoenfeld 2020), among others. These studies, especially those conducted in developed economies, reach a similar main conclusion: they confirm the significant negative effect of COVID-19 on the stock market.…”

COVID-19 and stock returns: Evidence from the Markov switching dependence approach

“…The most stringent COVID-19 prevention and control measures, starting from 1 February 2020, led to massive corporate shutdowns and/or insufficiency in production and supply chain disruptions, including logistical system blocks. Altogether, the rapid spread of COVID-19 created uncertainties in the growth of global economies, with a projected decline from + 3.4 % to − 4.4 % between October 2019 and October 2020 ( Jabeen et al, 2022 ) and a decrease in global trade volumes of 21 % during March-April 2020 and 9.2 % overall in year 2020 ( Barbero et al, 2021 ). Recurring negative media coverage worsened investor expectation and sentiment ( Papakyriakou et al, 2019 ), causing shocks, adverse moods and panic-selling due to fears of profit losses, resulting eventually in stock price fluctuations as well as market volatility and sporadic crashes ( Sun et al, 2016 , Huang, 2018 , Zhu et al, 2018 , Fan et al, 2019 ).…”

Prediction of Physical therapy stock prices by telehealth stocks and COVID19 cases

“…As a result of fewer secure and unskilled professions, young people and women workers are more vulnerable. They are also linked to the businesses worst hit by this unusual shock, such as restaurants, cafés, and tourism (11).…”