When: Friday, December 4, 2020, 12:01 PM - 1:00 PMWhere: Online
Speaker: Marwan Izzeldin, Gulnur Muradoglu, Vasileios Pappas and Sheeja Sivaprasad
This event is part of the Behavioural Finance Seminars on Corona Crisis: Online series by Professor Yaz Gulnur Muradoglu. This paper will investigate the impact of Covid-19 on stock markets across G7 countries, sectors and highlight the synchronicity and severity of this unprecedented crisis.
Authors: Marwan Izzeldin ( Lancaster University) Gulnur Muradoglu (Queen Mary University of London), Vasileios Pappas (University of Kent), Sheeja Sivaprasad (University of Westminster)Abstract: We investigate the impact of Covid-19 on stock markets across G7 countries (the US, the UK, Canada, France, Germany, Italy and Japan) and sectors (Consumer Goods, Consumer Services, Financials, Healthcare, Industrials, Materials, Oil & Gas, Technology, Telecommunications and Utilities) and highlight the synchronicity and severity of this unprecedented crisis. We find strong transition evidence to a crisis regime for all G7 countries and the aforementioned sectors suggesting the universal impact of Covid-19. However, crisis intensity and timing did vary. The Health Care and Consumer services sectors were among the most severely affected; a reflection of the Covid-19 drug-race and international travel restrictions. The Technology was hit the latest and least severely, as imposed lockdown measures forced people to explore various web-based entertainment and distraction options. Country-wise the UK and the US were the most affected with the highest heterogeneity in their business sectors’ response; a possible reflection of the ambiguity in the initial response to the adoption of lockdown measures. Countries that engaged sooner and more thoroughly in across the scale containment measures against Covid-19 weathered the financial crisis better.