Analyzing the impact of COVID-19 on global stock markets: An international comparative analysis

Abstract

In 2020, during the first wave of COVID-19, a massive collapse was observed in the stock markets of all the economically wealthy and prominent countries all over the world. Consequently, the second and third waves of COVID-19 strike stock markets in 2021. The objective of the present study is to search for the effect of the pandemic on eight major stock exchanges across different continents, namely, SENSEX, Dow-Jones, NYSE Composite, FTSE 100, SSE Composite, Nikkei 225, MOEX and MASI, in 2020-2021. Various techniques assess nonlinear analysis, volatility, and the chaotic nature of these markets. The present study concludes that though all the indices are volatile and non-chaotic, some structural changes in pattern are identified in this time frame. The FTSE 100 stands out as a stable investment option, while the NYSE Composite is recommended primarily for long-term investments.