The international spread of COVID-19 stock market collapses

Abstract

We identify periods of mildly explosive dynamics and collapses in the stock markets of 18 major countries during the first wave of the COVID-19 pandemic of 2020. We find statistical evidence of instability transmission from the Chinese stock market to all other markets. The recovery is heterogeneous and generally non-explosive.

The Impact of News about Pandemic on Borsa Istanbul during the COVID-19 Financial Turmoil

“…Many studies are deal with the impact of COVID-19 on the financial markets, such as the impact on stock market returns and volatility (Al-Awadhi et al, Alhammadi, 2020;Albulescu, 2020;Ali et al, 2020;Ashraf, 2020bAshraf, , 2020cBahrini & Filfilan, 2020;Contessi & Pierangelo, 2020;Harjoto et al, 2020;Mazur, Dang, & Vega, 2020;Rababah et al, 2020;Thorbecke, 2020;Topcu & Gulal, 2020), market illiquidity (Baig et al, 2020), contagion effect (Okorie & Lin, 2020), government interventions or responses against COVID-19 (Ashraf, 2020a;Zaremba et al, 2021;Zaremba et al, 2020), cryptocurrencies (Conlon & McGee, 2020;Corbet, Larkin, & Lucey, 2020;Goodell & Goutte, 2020), tourism and leisure sectors (Chen et al, 2020;Ghosh, 2020), uncertainty (Jeris & Nath, 2020), social trust (Mazumder, 2020), dividends (Krieger & Mauck, 2020), and commodity prices (Corbet, Goodell, & Günay, 2020;Devpura & Narayan, 2020;Huang & Zheng, 2020;Salisu, Ebuh, & Usman, 2020).…”

The Impact of COVID-19 Pandemic on Stock Market: Evidence from Romania

“…The economic effects of the COVID-19 pandemic appeared in every country under the impact of internal profile related to the spread of coronavirus and the measures adopted for its limitations and amplified by the globalisation and interconnectedness of economies. In most countries, stock markets were negatively influenced by the spread of the COVID-19 disease [4][5][6][7], by the implemented movement restriction policies [8][9][10], and by the uncertainties appearing in the global economy [11,12].…”

Effect of COVID-19 on the relationship between Euro/USD exchange rate and oil price

“… [42] for COVID-19 and stock market return relation of 76 countries; So et al. [45] for COVID-19 and Hong Kong stock returns; Ashraf [1] for stock market reactions to COVID-19 of 43 countries; Contessi and De Pace [7] for instability and crashes of 18 stock markets due to COVID-19; and Salisu and Akanni [40] for COVID-19 and stock returns of OECD countries. Haroon and Rizvi [14] find that COVID-19 cases are associated with the liquidity of financial markets.…”