How Did Financial Markets Respond to COVID-19 and Governmental Policies During the Different Waves of the Pandemic?

This study investigates the impact of COVID-19 and the policies implemented by the authorities on financial markets during the different waves of the pandemic. We found significant correlations between COVID-19 new cases and the volatility of financial markets in most of the studied samples during the three studied waves. We also found that financial markets in developed countries present a significant positive market vision, and those of emerging economies present mixed results.

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