Analysis of the Global Stock Market Trends

Azarenkova Galina¹, Shkodina Iryna² and Kavun Sergii^3,

¹Department of Finance and Financial and Economic Security, Kharkiv Institute of Banking University of Banking of the National Bank of Ukraine, Kharkiv, Ukraine

²Department of Economic Theory, Kharkiv Institute of Banking University of Banking of the National Bank of Ukraine, Kharkiv, Ukraine

³Department of Information Technologies, Kharkiv Institute of Banking University of Banking of the National Bank of Ukraine, Kharkiv, Ukraine

Cite this paper:
Azarenkova Galina, Shkodina Iryna and Kavun Sergii. Analysis of the Global Stock Market Trends. Journal of Finance and Economics. 2015; 3(4):67-71. doi: 10.12691/jfe-3-4-2

Abstract

The article has studied the dynamics of world trade market testifying, that is not taking into consideration its regeneration, the market development is connected with a sharp increase of uncertainty both at developed markets and in developing ones. The authors concluded that the dynamics of different segments of the world stock market depends not upon the economic situation in certain countries, but upon the actions of central banks, in the first place of the Federal Reserve Bank that actively pursue the policy of the quantitative easing. Desynchronization of the dynamics of different countries’ stock markets is the demonstration of the increase of fluctuations at the global level, what leads to a weakening of economic growth rate and changes for the worse financial market situation, which become serious risks to the global economy.

Keywords:
trend stock market quantitative easing volatility index MSCI

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]	Azarenkova, G., Shkodina, I. and Goykhman, M. “Influence policy of quantitative easing in financial market”, in Proceedings of the National Bank of Ukraine, 12. 56-60. 2013. [in Ukrainian].
[2]	Cauwels, P. and Sornette, D. “The FCO Cockpit – Global Bubble Status Report”, Chair of Entrepreneurial Risk, 2015. April 7th. Available from: http://www.er.ethz.ch/fco/ FCO_Cockpit_April1st_2015.pdf.
[3]	Cecchetti, S. and Kharroubi, E. “Why does financial sector growth crowd out real economic growth?”, BIS Working Papers 490. Monetary and Economic Department, 31. 2015. Available from: https://www.bis.org/publ/work490.pdf.
[4]	Chakrabarti, G. and Sen, C., Anatomy of Global Stock Market Crashes: An Empirical Analysis, (Springer Briefs in Economics), Springer, New Delhi, New York, 2012.
[5]	Engen, Eric M., Thomas T. Laubach, and David Reifschneider (2015). “The Macroeconomic Effects of the Federal Reserve’s Unconventional Monetary Policies,” Finance and Economic Discussion Series 2015-005. Board of Governors of the Federal Reserve System (U.S.).
[6]	Fawley, W.B. and Neely, J.C. “Four Stories of Quantitative Easing”, Federal Reserve Bank of St. Louis Review, 95(1). 51-88. 2013. Available from: https://research.stlouisfed.org/ publications/review/13/01/Fawley.pdf.
[7]	International Monetary Fund. Available from: http://www.imf.org.
[8]	Jorion, P. and Goetzmann, W.N. “Global Stock Markets in the Twentieth Century”, The Journal of Finance, 54(3). 953-980. 2010.
[9]	Luceya, B.M. and Muckley, C. “Robust global stock market interdependencies”, International Review of Financial Analysis, 20(4). 215-224. 2011.
[10]	Lucía, C.S., Marcel, F. and Christian, T. “The transmission of emerging market shocks to global equity markets”, European Central Bank – working paper series 724. 2007.
[11]	Morais, Bernardo, Jose-Luis Peydro, and Claudia Ruiz (2015). The International Bank Lending Channel of Monetary Policy Rates and QE: Credit Supply, Reach-for-Yield, and Real Effects. International Finance Discussion Papers 1137.
[12]	MSCI Index. Available from: http://www.msci.com/products/ indexes.
[13]	Shiller, R.J. “Stock Market Data Used in Shiller, Irrational Exuberance”, Princeton University Press, 2000, 2005, 2015. Available from: www.econ.yale.edu/~shiller/data/ie_data.xls.
[14]	Smith, B.M., A History of the Global Stock Market: From Ancient Rome to Silicon Valley, Chicago, III: Univ. of Chicago Press. 2003.
[15]	Srikanth, P. and Aparna, K. “Global stock market integration - a study of select world major stock markets”, Journal of Arts, Science & Commerce, III(I). 203-211. 2012.
[16]	Standard&Poor's. Available from: www.standardandpoors.com.
[17]	World Federation of Exchanges (WFE). Available from: http://www.world-exchanges.org.
[18]	Yan, Y., Mao-Xin, L., Xiao-Wu, Z. and Xiao-Song, C. “Principle Fluctuation Modes of the Global Stock Market”, Chinese Physics Letters, 29(2). 028901. 2012.