CORONAVIRUS (COVID-19) AND STOCK MARKETS: THE EFFECTS OF THE PANDEMIC ON THE GLOBAL ECONOMY

Authors : Zekai ŞENOL, Feyyaz ZEREN

Pages : 1-16

View : 20 | Download : 11

Publication Date : 2020-04-30

Article Type : Research Paper

Abstract :The novel coronaviris (COVID-19) virus, which emerged in Wuhan City, Hubei Province of China, spread to other countries over time and was declared a global epidemic by the World Health Organization (WHO) on March 11, 2020. With the epidemic, curfews were imposed, workplaces closed, production decreased, shopping stopped, except for basic supplies. COVID-19 endangered human health as well as increased risk perception in financial markets. Large decreases occurred in stock markets in a short time, companies lost value, stock prices dropped. In this study, it was investigated that the effect of COVID-19 outbreak on global markets between January 21, 2020 and April 7, 2020. Global markets are represented by MSCI’ World, emerging market, European and G7 indices. In the study where Fourier Cointegration test was applied, it was detected that a long-term relationship between stock markets and COVID-19.
Keywords : Coronavirus, COVID 19, Stock Exchanges, MSCI, Fourier