Financial markets under the global pandemic of COVID-19

Financ Res Lett. 2020 Oct:36:101528. doi: 10.1016/j.frl.2020.101528. Epub 2020 Apr 16.

Abstract

The rapid spread of coronavirus (COVID-19) has dramatic impacts on financial markets all over the world. It has created an unprecedented level of risk, causing investors to suffer significant loses in a very short period of time. This paper aims to map the general patterns of country-specific risks and systemic risks in the global financial markets. It also analyses the potential consequence of policy interventions, such as the US' decision to implement a zero-percent interest rate and unlimited quantitative easing (QE), and to what extent these policies may introduce further uncertainties into global financial markets.

Keywords: Coronavirus; Financial markets; Pandemic; Quantitative easing; Systemic risk.