Author(s): Mubashir Ali Khan
This study investigates the relationship between novel coronavirus COVID-19 confirmed cases and deaths on stock market return in China and Italy. The study is unique in the context of China and Italy, as these two countries suffered badly at the start of this pandemic. This study empirically analyzes the daily confirmed cases and deaths for the period from February 15, 2020, to March 2020. This study uses data from FTSE (Milano Italia Borsa) and Shanghai Stock Exchange of top 40 and 50 companies, respectively, for stock returns. The COVID-19 data is collected daily by World meter. Using panel data on Chinese and Italian stocks, it was found that there is a negative association between stock returns and the total number of confirmed cases and deaths. This study will allow financial policymakers to assess the financial crisis in this COVID-19. Additionally, this study highlights the economic impact of COVID-19 by analyzing its impact on stock returns.