The Impact of COVID-19 on the European and Chinese Financial Market

Abstract

COVID-19 strongly influences the global financial markets. Our research lied in discovering its impact. Therefore, we used eight months' data, including daily price changes of the Chinese Index and the daily price changes of the European index. Then, we found COVID-19 Impact on different financial markets. We took the cumulative daily number of confirmed cases and daily deaths in Europe and China as quantified bad news and collected the degree of influence of the two indexes on stock indexes. We used additional control variable method to check its robustness. The model passed the test. Finally, it briefly summarized COVID-19 has a negative impact on the European and Chinese Financial Market, but the specific degree of impact is different. This research helps investors make sound investment choices in the post-epidemic era.