Research on the Impact of COVID-19 on Futures Market

Abstract

This paper focuses on the specific impacts of COVID-19 on the performance and trading conditions of various global futures markets. The major impact of COVID-19 on the economy includes the raised concern of market stress, city lockdowns and travel restrictions. These factors can negatively affect the performance of future markets in different ways and to different degrees. This paper will explore the topics of the interconnectedness of several commodity futures performances, the volatility and return of major commodity futures, the relationship between various contemporary financial indicators and the performance of crude oil future, as well as the general performance of innovative future types. The study has found that the interconnected linkages between several commodity futures appeared under COVID pandemics. Furthermore, the study shows that COVID-19 has a considerable influence on both the short-term and long-term volatilities of industry-related and consumer staple-related futures to different degrees. Lastly, the coronavirus crisis has an overwhelmingly negative impact on the prices of innovative forms of the future, including the carbon future and Bitcoin future.