Revisiting oil-stock nexus during COVID-19 pandemic: Some preliminary results

Salisu, Afees A.; Ebuh, Godday Uwawunkonye; Usman, Nuruddeen

doi:10.1016/j.iref.2020.06.023

Cited by 243 publications

(188 citation statements)

References 22 publications

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“…In doing so, we come into conclusion that the investors' attitudes towards the uncertainties in terms of fear, macroeconomics and microeconomics will be stimulus to the risk of market crash risk. Our findings also confirm the extant literature of fear and stock market dynamics (such as Bitcoin market, Chen et al (2020); the financial markets, Sharif et al (2020); energy market, Salisu et al (2020)). By examining the causal relationship, our policy implication would be focused on how to alleviate the investors' panic to maintain the stability of the market.…”

Section: The Interaction Effect Between Covid-19 and The Fear Sentimentsupporting

confidence: 91%

Risk attitude, financial literacy and household consumption: Evidence from stock market crash in China

2021

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Section: The Interaction Effect Between Covid-19 and The Fear Sentimentsupporting

confidence: 91%

Risk attitude, financial literacy and household consumption: Evidence from stock market crash in China

2021

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“…In the first model, the number of new infection cases from China have no effect on the BET index return. However, a decrease of crude oil price leads to a higher uncertainty, consistent with Salisu, Ebuh and Usman [23], suggesting the necessity for policymakers to diminish fears in financial markets. In addition, the exchange rate negatively influences stock market return in the long-run.…”

Section: Ardl-the Number Of New Cases In Italy Due To Covid-19supporting

confidence: 60%

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

Gherghina

Armeanu

Joldeș

2020

IJERPH

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This paper examines the linkages in financial markets during coronavirus disease 2019 (COVID-19) pandemic outbreak. For this purpose, daily stock market returns were used over the period of December 31, 2019–April 20, 2020 for the following economies: USA, Spain, Italy, France, Germany, UK, China, and Romania. The study applied the autoregressive distributed lag (ARDL) model to explore whether the Romanian stock market is impacted by the crisis generated by novel coronavirus. Granger causality was employed to investigate the causalities among COVID-19 and stock market returns, as well as between pandemic measures and several commodities. The outcomes of the ARDL approach failed to find evidence towards the impact of Chinese COVID-19 records on the Romanian financial market, neither in the short-term, nor in the long-term. On the other hand, our quantitative approach reveals a negative effect of the new deaths’ cases from Italy on the 10-year Romanian bond yield both in the short-run and long-run. The econometric research provide evidence that Romanian 10-year government bond is more sensitive to the news related to COVID-19 than the index of the Bucharest Stock Exchange. Granger causality analysis reveals causal associations between selected stock market returns and Philadelphia Gold/Silver Index.

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“…The global outbreak of COVID-19 has resulted in a standstill of the world's economy, total lockdown in some counties, closedown of business and industries is anticipated to affect the economic strength of countries. As a result, several works of literature (33)(34)(35)(36)(37)(38)(39)(40)(41)(42)(43)(44)(45)(46)(47) ascertained the impact of the novel virus on the stock market. However not like a high percentage of these works (33,(38)(39)(40)(41)(42)(43)(44)(45)(46)(47) that focused on regional datasets, this study presents a comprehensive examination of the information on daily reported COVID-19 cases and stock market fluctuation over thirty stock market indices (see Table 2 ) that houses the stock prices of several countries around the globe using decision tree algorithm.…”

Section: Conclusion and Recommendationmentioning

confidence: 99%

“…As such, the COVID-19 outbreak has brought a significant deal of curiosity on its economic impact on the financial markets. howsa summary of related works (33)(34)(35)(36)(37)(38)(39)(40)(41)(42)(43)(44)(45)(46)(47) , specifically in the context of the economic effect of novel COVID-19 on the stock market. We categorised these studies based on the objectives, the period of the dataset and studied stock market.…”

Section: Introductionmentioning

confidence: 99%

“…As seen in Table 1 , many previous studies (33,(38)(39)(40)(41)(42)(43)(44)(45)(46)(47) on the economic effect of the novel COVID-19 on the stock market concentrated on regional stock markets. Only a few (34)(35)(36)(37) examine the impact of the novel virus on the global stock market. However, the study by (35) reveals that the decline in stock market returns in a country is proportional to the number of COVID-19 cases reported in the said country.…”

Section: Introductionmentioning

confidence: 99%

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The COVID-19 outbreak and effects on major stock market indices across the globe: A machine learning approach

Adekoya¹,

Nti²

2020

IJST

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Background/Objectives: The Coronavirus disease in 2019 (COVID-19) was first seen in Wuhan (capital of Hubei, Chain), and has since spread throughout the world, resulting in the World Health Organisation (WHO) declaring the 2019-20 coronavirus a pandemic. Its ongoing spread has resulted in a standstill of the world's economy, total lockdown in some counties, closedown of business and firms globally. As of 25 th Mar 2020, 11:00 am GMT, a total of 491,280 cases were reported globally. The evolution of COVID-19 and its economic impact on the regional financial markets are highly uncertain, which makes it difficult for legislators to formulate a suitable macroeconomic strategy response. Methods: To ascertain the possible economic impact of COVID-19 globally, this study examines the effect of COVID-19 on major stocks indices across the globe. Using a random sampling technique, we selected thirty (30) world stock market indices in different countries infected with COVID-19 from 31 st Dec 2019 to 25 th Mar 2020. However, not like a high percentage of previous studies that focus on the regional stock market, we examine the information on daily reported COVID-19 cases and stock market fluctuation over thirty stock market indices that houses the stock prices of several countries around the globe. Also, we estimate the monetary loss within the period, project the future surge of this pandemic on the stock market and outline some portfolio allocation strategies to help the investor hedge against investment risk. Findings: The experimental results in this study show that even a controlled outbreak of the COVID-19 can significantly influence the world's economy in both the short-term and longterm. Our obtained results of COVID-19 associated economic loss echoed in stock prices movements advise that the cost can escalate severely and quickly into global economic stress. Hence, we conclude by outlining some measure that might help investors hedge against such risk using portfolio allocation strategies.

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Revisiting oil-stock nexus during COVID-19 pandemic: Some preliminary results

Cited by 243 publications

References 22 publications

Risk attitude, financial literacy and household consumption: Evidence from stock market crash in China

Risk attitude, financial literacy and household consumption: Evidence from stock market crash in China

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

The COVID-19 outbreak and effects on major stock market indices across the globe: A machine learning approach

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