Effect of COVID-19 Pandemic on Global Stock Market Values: A Differential Analysis


  • Collins C Ngwakwe


Stock Markets; Stock values; Investment; Epidemic; COVID-19; Black swan theory; Euronext 100; Shanghai Composite Index; S&P 500; Dow Jones; Unexpected event


This paper presents a current analysis of the effect of coronavirus pandemic on select global
stock indexes (SSE Composite Index [China], Euronext 100 [Europe], Dow Jones Industrial Average
[United States of America]. The objective of the paper is to evaluate the extent and direction of the
differential effect of COVID-19 pandemic on select world stock index. The data on stock value
performance were gathered for fifty days before and fifty days within the Coronavirus epidemic; data
were analysed using the paired t-test of difference in mean stock values at an alpha level of 0.05(5%).
The results reveal that the COVID-19 pandemic has different effects on the stock markets. Dow Jones
Industrial Average showed a significant reduction in mean stock value during the coronavirus period,
Chinese Stock Exchange Composite Index experienced a significant increase in mean stock values
during epidemic higher than before the epidemic. On the contrary, the S&P 500 and the Euronext 100
indexes show a non-significant difference in mean stock price. The paper provides direction to stock
market participants, investors and speculators regarding a safer investment destination during this time
of COVID-19 pandemic; the paper serves a good case study for class room teaching and also provides
direction for further research. This paper provides the first empirical research on the early effect of
COVID-19 pandemic on three global important regional stock indexes, which finds that some stock
markets such as the Shanghai Composite Index is resilient to COVID-19 pandemic.


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How to Cite

Ngwakwe, C. C. . (2020). Effect of COVID-19 Pandemic on Global Stock Market Values: A Differential Analysis: Array. Acta Universitatis Danubius. Œconomica, 16(2). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/258