First to React Is Last to Forgive: Evidence from the Stock Market Impact of COVID 19

Sherif Hassan and John Riveros Gavilanes

No 2-2020, MSR Working Papers from M&S Research Hub institute

Abstract: COVID 19 has had parallel and uneven economic shocks across countries since its outbreak in December 2019. Stock markets as usual were the first to react, with drop rates as much as the Global Financial crises of 2008. This study uses daily data to model the dynamic impact of COVID 19 pandemic on returns of selected stock market indices and globally-traded commodities. The overall panel least squares VAR estimation results indicate a negative short termed impact of 2.3% on the performances of the stock markets when the spread rate of corona-virus increases by 1% across countries ceteris paribus. While The COVID 19 contamination rate is not statistically significant to explain the changes in the exchange rate and gold prices in the countries of analysis, yet the virus spread rate is found to be significant in steering prices of platinum, silver, WTI, and Brent crude oil.

Keywords: Panel VAR; Stock Market Indices; COVID 19 (search for similar items in EconPapers)
JEL-codes: G01 G15 H12 I15 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2020-07-11
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: First to React Is the Last to Forgive: Evidence from the Stock Market Impact of COVID 19 (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:msrwps:2020_002

Access Statistics for this paper

More papers in MSR Working Papers from M&S Research Hub institute Carlo Mierendorff Str 43-34132 Kassel, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by John Mandor ().