Heterogenous responses of stock markets to covid related news and sentiments: Evidence from the 1st year of pandemic

Javed Bin Kamal and Mark Wohar

International Economics, 2023, vol. 173, issue C, 68-85

Abstract: In this paper, we study the impact of news and sentiments related to covid-19 on United Kingdom (UK)'s stock returns from February 4, 2020 to December 7, 2020. Our results show that covid-19 daily cases exert a significant negative effect on stock returns whereas covid-19 daily deaths have a significant positive impact. These findings hold when covid-related news and sentiments indices are controlled with the 2nd wave data, and when the US policies and equity market volatilities from infectious diseases are used as controls. The magnitude of the effect of covid cases and deaths indicates that the pandemic is not very harmful to the UK stock market.

Keywords: Covid-19; United Kingdom; Stock market returns; FTSE100 (search for similar items in EconPapers)
JEL-codes: G12 G18 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:173:y:2023:i:c:p:68-85

DOI: 10.1016/j.inteco.2022.11.001

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