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

Mohsin Ali, Nafis Alam and Syed Aun R. Rizvi

Journal of Behavioral and Experimental Finance, 2020, vol. 27, issue C

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: Coronavirus; Financial markets; Bitcoin; Gold; Equity markets; Volatility (search for similar items in EconPapers)
JEL-codes: C58 G01 G10 G14 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (146)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:27:y:2020:i:c:s2214635020301350

DOI: 10.1016/j.jbef.2020.100341

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