Stock and Foreign Exchange Markets under the Pandemic

Abstract

The background of this paper is that the outbreak of the pandemic had a great impact on the financial market, and the stock market and foreign exchange market had significant fluctuations under the influence of the pandemic. This paper mainly adopts the literature research method and qualitative analysis method. The first part of the research is how the stock prices of the pharmaceutical industry and the gaming industry change under the pandemic and the intrinsic factors of the changes, and the second part is the fluctuation changes of the RMB exchange rate and the US dollar index under the pandemic and analyses the reasons for the abnormal changes. Through the study, it was found that both the pharmaceutical industry and the gaming industry did not see stocks plummet due to the outbreak of the pandemic but instead rose significantly. The main reason for this phenomenon is that these two industries have been affected by the pandemic and the demand has greatly increased, thus making the company's earnings have increased and the stock price has also risen. The main purpose of this paper is to enhance the stability of financial markets by analyzing the causes of their volatility.