Central Bank COVID-19 Policy and Equities Market Sensitivity in Europe and the U.S.

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F23%3A%230001023" target="_blank" >RIV/04274644:_____/23:#0001023 - isvavai.cz</a>

Výsledek na webu

<a href="https://dpublication.com/journal/IJARME/article/view/1100" target="_blank" >https://dpublication.com/journal/IJARME/article/view/1100</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.33422/ijarme.v6i2.1100" target="_blank" >10.33422/ijarme.v6i2.1100</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Central Bank COVID-19 Policy and Equities Market Sensitivity in Europe and the U.S.

Popis výsledku v původním jazyce

With the beginning of the COVID-19 pandemic, the Federal Reserve (Fed) as well as the European Central Bank (ECB) have pursued a very expansionary monetary policy to mitigate potential economic impacts. In 2022, inflation fears caused bond yields to rise significantly, and the prevailing academic view is that this environment has a negative impact on stock market performance and high-growth stocks in particular. In this paper the performance of stock markets STOXX Europe 600 and S&amp;P 500 is analysed in relation to the central bank policy from 2020 to 2022. The assumption is that the outperformance of single sectors was due to interest rates and a mean-reversion process will occur in 2022. The results of the paper show no significant correlation between interest rates and sector outperformance but between both indices. On this basis, further research on individual sectors, stocks, and other possible variables such as inflation is recommended.

Název v anglickém jazyce

Central Bank COVID-19 Policy and Equities Market Sensitivity in Europe and the U.S.

Popis výsledku anglicky

With the beginning of the COVID-19 pandemic, the Federal Reserve (Fed) as well as the European Central Bank (ECB) have pursued a very expansionary monetary policy to mitigate potential economic impacts. In 2022, inflation fears caused bond yields to rise significantly, and the prevailing academic view is that this environment has a negative impact on stock market performance and high-growth stocks in particular. In this paper the performance of stock markets STOXX Europe 600 and S&amp;P 500 is analysed in relation to the central bank policy from 2020 to 2022. The assumption is that the outperformance of single sectors was due to interest rates and a mean-reversion process will occur in 2022. The results of the paper show no significant correlation between interest rates and sector outperformance but between both indices. On this basis, further research on individual sectors, stocks, and other possible variables such as inflation is recommended.

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

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OECD FORD obor

50200 - Economics and Business

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

International Journal of Applied Research in Management and Economics

ISSN

2538-8053

e-ISSN

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Svazek periodika

6

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

LT - Litevská republika

Počet stran výsledku

19

Strana od-do

33-51

Kód UT WoS článku

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EID výsledku v databázi Scopus

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