Predicting the European stock market during COVID-19: A machine learning approach

Khattak, Mudeer Ahmed; Ali, Mohsin; Rizvi, Syed Aun R.

doi:10.1016/j.mex.2020.101198

Cited by 48 publications

(28 citation statements)

References 21 publications

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“…Regarding Europe Khattak et al (2021) used a machine learning technique from January 1 to June 26, 2020, to investigate the influence of the European market of 21 shocks during the covid-19 pandemic crisis. They found that the European market was affected mainly by the index of Singapore, Switzerland, Spain, France, Germany, and the S&P500.…”

Section: Literature Reviewmentioning

confidence: 99%

“…France is the second power in the EU member countries after Germany, so it is significant to investigate the effect of the pandemic on its pharmaceutical industry because, as a leading economy, it might have contagious effects on the other EU members. Khattak et al (2021) found that Germany and France were the predictors that influenced most of the European market due to the Covid-19 crisis.…”

Section: Introductionmentioning

confidence: 99%

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Stock Market Reaction at the WHO’s Announcement of a Pandemic due to COVID-10 of the French Pharmaceuticals

Lyroudi¹,

Nikolopoulos²

2021

ERSJ

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a pandemic. This research paper aims to investigate the market reaction of the pharmaceutical companies in France on the day that WHO announced the Covid-19 disease to be a pandemic. Design/Methodology/Approach: We apply the classical event study methodology for our purpose. We selected this sector because we considered that a health crisis such big as the coronavirus pandemic would, of course, affect all the industries in various degrees. Still, it will strongly influence the pharmaceutical sector that also has the opportunity/chance of finding a cure (medicines and vaccines) to this disease and stop the crisis. It seems to be the only industry that can fight back such a crisis by finding a cure. Findings: The results show a strong adverse reaction upon this announcement in pharmaceutical companies in contrast to our hypothesis. The French investors perceived this announcement as a negative signal that will affect almost every economic sector, including the pharmaceutical companies. However, since March 18th, 2020, the second day of the government imposed total lockdown, the market reaction turned positive and significant. Practical Implications: The results of this research may be useful for Government decision makers, investors and pharmaceutical companies in order to optimize their strategies and improve their responses to the ongoing pandemic crisis. Originality/Value: The results of this study will be helpful not only to the academicians by enriching the pertinent literature and the politicians and the practitioners. They can benefit from focusing on this sector and determine the appropriate policies and measures for its growth in finding the means to fight this health crisis.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Stock Market Reaction at the WHO’s Announcement of a Pandemic due to COVID-10 of the French Pharmaceuticals

Lyroudi¹,

Nikolopoulos²

2021

ERSJ

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“…This study provides the following insights. The results show an existence of a long-run relationship among employment, labor productivity and trade openness 1 One of the important lessons from the current COVID-19 pandemic is that countries have become more open and, as a result, they have become more susceptible to external shocks like the COVID-19 outbreak; see Akram et al (2020), Vidya, andPrabheesh (2020), Chen et al (2020), Devpura (2020), Devpura and Narayan (2020), Iyke (2020a, b, c), Khattak et al (2020), Liu, Sun and Zhang (2020), Liu, Choo and Lee (2020), Mishra et al (2020), Narayan (2020a, b, c), Narayan, Devpura and Wang (2020), Narayan, Phan and Liu (2020), Narayan, Gong and Ahmed (2020), Phan and Narayan (2020), Sha and Sharma (2020), Sharma &Sha (2020), andSharma (2020) for studies exploring the impact of the COVID-19 pandemic on economies). Therefore, understanding how openness affects indicators like employment and productivity is of importance to economic agents.…”

Section: Introductionmentioning

confidence: 97%

The Nexus Among Employment, Productivity and Trade Openness: Evidence From Brics and Indonesia

Rath

Ridhwan

2020

BEMP

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This paper investigates the nexus among employment, labor productivity and trade openness in Brazil, Russia, India, China, South Africa (BRICS), and Indonesia using annual data (1991–2018). The results suggest a long-run relationship among the variables but only in the agricultural sector of these economies. We also find a unidirectional causality running from employment to productivity in only the agricultural sector. Similarly, trade openness also Granger causes employment. Our final result indicates that trade openness positively influences labor productivity in the long-run. From a policy perspective, it is imperative for BRICS and Indonesia to target employment generation by promoting trade openness.

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“…In addition to equities, the influence of the other assets classes like cryptocurrency (Conlon & McGee, 2020;Demir et al, 2020), gold (Gharib et al, 2021); Mensi et al, 2020), real estate (Milcheva, 2021;Ling et al, 2020), oil price (Sharif et al, 2020;Wu et al, 2021) and bonds (Falato et al, 2020) have been explored by the research. Furthermore, by examining the potential internal and external determinants, Khattak et al (2021) explored the potential predictors of European financial market during COVID-19 crisis. In this literature, they have used Least Absolute Shrinkage and Selection Operator (LASSO) Machine Learning technique for both selections of the model and regularization in the analysis.…”

Section: Introductionmentioning

confidence: 99%

COVID-19 Vaccination Effect on Stock Market and Death Rate in India

Behera

Pasayat

Behera

2022

Asia-Pac Financ Markets

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The COVID-19 epidemic has brought attention to the vulnerability of new illnesses, and immunization remains a viable option for resuming normal life. This paper examines the influence of COVID-19 vaccination on the death rate and the performance of stock market in India. For this study, COVID-19 vaccination and death rate data is gathered from the Ministry of Health and Family Welfare (MoHFW) portal, and the data for the stock index is taken from the Bombay Stock Exchange (BSE), India. In order to achieve a precise representation of feature significance and distribution, EDA (Exploratory Data Analysis) is utilized in this study. The impact of COVID-19 immunization on the mortality rate and stock market index is investigated using both statistical analysis and Machine Learning Regression-based models. The models are remarkably accurate in reproducing actual result. The empirical study suggests that vaccination has a strong positive impact on the stock market and reducing the death rate. Furthermore, the policies recommended by government and monetary authorities coupled with COVID-19 vaccine supported the stock market recovery in pandemic.

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Predicting the European stock market during COVID-19: A machine learning approach

Cited by 48 publications

References 21 publications

Stock Market Reaction at the WHO’s Announcement of a Pandemic due to COVID-10 of the French Pharmaceuticals

Stock Market Reaction at the WHO’s Announcement of a Pandemic due to COVID-10 of the French Pharmaceuticals

The Nexus Among Employment, Productivity and Trade Openness: Evidence From Brics and Indonesia

COVID-19 Vaccination Effect on Stock Market and Death Rate in India

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