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. 2020 Sep:27:100341.
doi: 10.1016/j.jbef.2020.100341. Epub 2020 May 16.

Coronavirus (COVID-19) - An epidemic or pandemic for financial markets

Mohsin Ali  1 , Nafis Alam  2 , Syed Aun R Rizvi  3
Affiliations

Coronavirus (COVID-19) - An epidemic or pandemic for financial markets

Mohsin Ali et al. J Behav Exp Finance. 2020 Sep.

Abstract

The novel Coronavirus disease (COVID-19) has quickly evolved from a provincial health scare to a global meltdown. While it has brought nearly half the world to a standstill it has affected the financial markets in unseen ways by eroding a quarter of wealth in nearly a month. This paper investigates the reaction of financial markets globally in terms of their decline and volatility as Coronavirus epicentre moved from China to Europe and then to the US. Findings suggest that the earlier epicentre China has stabilized while the global markets have gone into a freefall especially in the later phase of the spread. Even the relatively safer commodities have suffered as the pandemic moves into the US.

Keywords: Bitcoin; Coronavirus; Equity markets; Financial markets; Gold; Volatility.

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Figures

Fig. 1
Fig. 1
Return of regional indices.
Fig. 2
Fig. 2
Return of European countries’ indices.
Fig. 3
Fig. 3
Return of Bitcoins, Oil and Gold.
See this image and copyright information in PMC

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