Impact of the Coronavirus (COVID-19) on Major Northern Hemisphere Stock Markets

Abstract

As is known, the stock market plays a critical role in the development of economy all over the world even during the epidemic of Coronavirus (COVID-19). The economic risks posed by the pandemic are even more severe by the high degree of interconnectedness within the modern economic system. This paper obtains a large number of theoretical and analytical results on the impact of the outbreak on stock markets in various continents and different countries. Therefore, this paper primarily summarizes and analyzes the general effect of the pandemic on stock markets of the main countries in the Northern Hemisphere. The results of this paper are based on a review of previous literatures. It is shown that the outbreak has a generally non-positive impact on countries economy and finance, albeit a limited one, and it typically has relatively pronounced and severe effects within the initial stage.