 Oil Shocks and Stock Market Performance: Evidence from the Eurozone and the USAJoão Leitão and
Joaquim Ferreira ()
A chapter in The Economics of Digital Transformation, 2021, pp 105-122 from Springer Abstract: Abstract Recent oil price developments contribute to renewed interest in the subject of oil shocks regarding international stock market performance. In this connection, this study uses a structural VAR (SVAR) model to evaluate the impact of BRENT and WTI crude oil price effects on the Dow Jones, DAX, CAC, ATHENS Composite, and PSI20 performance. The dynamic analysis gives support to the nonsignificant effects of oil prices on the US and Eurozone markets. Nevertheless, in the context of stock markets, the findings suggest that Dow Jones becomes the prevailing market-driver of Eurozone market performance. Furthermore, there is only a unidirectional, significant relationship in Eurozone stock markets, from the CAC to the PSI20. The outstanding role of the US stock market reflects the fact of this being the world’s largest economy in addition to being closely linked to other economies worldwide. The impact of the French stock market on the Portuguese stock market is justified by the integration of both stock markets in the Euronext Stock Exchange. Keywords: Oil shocks; Stock markets; SVAR (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:seschp:978-3-030-59959-1_7 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-59959-1_7 Access Statistics for this chapter More chapters in Studies on Entrepreneurship, Structural Change and Industrial Dynamics from Springer |
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