Huaibing Yu

Correspondence: Huaibing Yu, HuaibingYu@my.unt.edu

Department of Finance, University of North Texas, USA

pdf (681.58 Kb) | doi: https://doi.org/10.47260/bae/7213

Abstract

Based on data of 6 major developed stock markets, this paper provides empirical evidences about how stock markets across the globe behave during the Covid-19 global pandemic. Evidences show that the movements of most stock market indices were individually dependent on the development of the Covid-19 pandemic in the corresponding countries during the pre-bottom period. However, this phenomenon largely faded away after stock markets bottomed out and entered into the recovery stage. Vector error correction model (VECM) confirms the cross-markets equilibrium during the Covid-19 pandemic and the majority of stock markets are expected to restore to new equilibriums relatively quickly if exogenous shocks are introduced in the future.

Keywords:

  Covid-19 Pandemic, Stock Market, Cointegration, Market Behavior, Market Impact

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