Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Business and Policy Studies

Series Vol. 10 , 13 September 2023


Open Access | Article

Research on the Impact of COVID-19 on Futures Market

Yichi Zhang * 1
1 Dalian American International School

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 10, 127-131
Published 13 September 2023. © 13 September 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Yichi Zhang. Research on the Impact of COVID-19 on Futures Market. AEMPS (2023) Vol. 10: 127-131. DOI: 10.54254/2754-1169/10/20230445.

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.

Keywords

COVID, volatility, commodity future, interconnectedness, crude oil

References

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2. ft.lk, (2022), COVID-19: The economic impact simplified, https://www.ft.lk/Columnists/COVID-19-The-economic-impact-simplified/4-697725.

3. Jiang Wang, South Korea, (2020), Analysis of the impact of COVID - 19 on the correlations between crude oil and agricultural futures, https://www.sciencedirect.com/science/article/pii/S0960077920302964?ref=pdf_download&fr=RR-2&rr=741c1f747ea72542.

4. Md. Mostafa Kamal, China, (2021), Interconnectedness of the Global Commodities Futures Markets: COVID-19 Pandemic vs. the Global Financial Crisis, https://acfr.aut.ac.nz/__data/assets/pdf_file/0003/530778/Manuscript_Interconnectedness-of-the-Global-Commodities-Futures-Markets.pdf.

5. Ahmet Goncu, China, (2021), Effects of Covid-19 Pandemic on Chinese Commodity Futures Markets, https://arxiv.org/ftp/arxiv/papers/2106/2106.09250.pdf.

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8. Zibo Niu, China, (2022), The role of uncertainty measures in volatility forecasting of the crude oil futures market before and during the COVID-19 pandemic, https://www.sciencedirect.com/science/article/pii/S0140988322002791?ref=pdf_download&fr=RR-2&rr=741bc02afa679815.

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10. Yue Dou, China, (2021), Dynamic linkages between economic policy uncertainty and the carbon futures market: Does Covid-19 pandemic matter?, https://www.sciencedirect.com/science/article/pii/S0301420721004633?ref=pdf_download&fr=RR-2&rr=741bde5f787b96f0.

11. Beum-Jo Park, South Korea, (2021), The COVID-19 pandemic, volatility, and trading behavior in the bitcoin futures market, https://www.sciencedirect.com/science/article/pii/S0275531921001409?ref=pdf_download&fr=RR-2&rr=741c1f77088a2542.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Business and Policy Studies
ISBN (Print)
978-1-915371-47-8
ISBN (Online)
978-1-915371-48-5
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/10/20230445
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated