STOCK MARKET CORRELATIONS AND THE BUSINESS SENTIMENTS: EVIDENCE FROM THE US AND GERMANY

• Authors: Gao Ruzhao , Zhang Bing , Liu Haifei
• Languages of publication: EN

Abstracts

EN

We analyse the correlations between the US and German stock markets and study the influences of the US and German business sentiments on the correlations. On the whole, high US business sentiment increases the correlations, while low US business sentiment decreases the correlations. However, the German business sentiment has virtually no influence on the correlations. The correlations are joint positive-type asymmetric, although the asymmetry is not statistically significant. Both the asymmetry in the correlations and the influences of the business sentiments on the correlations had structural breaks caused by the advent of the Euro and the recent financial crisis.

Keywords

EN

BUSINESS; CORRELATION; STOCK MARKET; USA; GERMANY

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2018
• Volume: 66
• Issue: 4
• Pages: 396 – 415

Contributors

author

Gao Ruzhao

• Faculty of Science, Bengbu University, 1886 Caoshan Road, Bengbu, Anhui, 233023, China

author

Zhang Bing

author

Liu Haifei