Financial Market in the Period of the Pandemic: Trends and Forecasts

Abstract

The modern world at the end of 2019 faced an unprecedented shock-the coronavirus pandemic, which affected all spheres of society and the world economy. The global financial market, which has been significantly affected by the pandemic, is no exception. Many scientists and financiers around the world compare the current situation with the great depression and the consequences of World War II. The world is just beginning to calculate the real losses from the coronavirus epidemic. Most national economies forecast a severe recession in 2020, with global losses of about 3%. With a decrease in macroeconomic indicators, the stock market during the active phase of the pandemic shows growth. The specificity of stock markets is that they are not a mirror image of the state of the economy: index peaks usually occur just before the start of a recession, and index growth is usually an advance process that begins before economic growth begins. The article raises topical issues of COVID-19’s influence on global financial markets. The aim of this article is to review the dynamics of the main stock market indices, determine the reasons for the deterioration of economic development with the application of the world’s best management practices, and evaluate the measures of financial regulators for the growth of the financial market. The methodological tools of this research are General and particular research methods, methods and tools for graphical interpretation, comparative analysis, and related changes. The article gives a theoretical overview of the research of the problem, retrospective analysis of the impact of a pandemic on financial markets, examines the major stock market indices and forecasts for the global economy, the monetary actions of Central banks to stabilize the economic situation.