The Impact of COVID-19 on UK and World Financial Markets

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Yun-Zhang Li, Yong-Hao Yu,Wei-Sen Gao, Samrat Ray, Wen-Ting Dong


COVID 19 was one of the recent incidents that had a severe impact on the economy.This study discusses changes in yields in the UK stock market and major global financial markets before and after COVID 19.The results obtained in this paper can be summarized in two points.First, The arrival of covid-19 pandemic changed the entire dynamics of the stock market in UK and small or micro industries surviving were all vanished or incurred huge financial losses.The regression coefficient data shows that stocks are more volatile, and the return on investment in stocks after COVID 19 is lower than the return before COVID 19.Secondly, this paper discusses the correlation of important national financial markets. Through the VAR model and the impulse response function model, it can be seen that the correlation and volatility of global financial assets have continued to increase after COVID-19, and the volatility of investors' yields has also increased. After COVID 19, the effect of risk transfer in the financial market has been increasing, and the difficulty of investing is also increasing.This research provides advice for investors.

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