Analyzing the Influence of Global Energy Price Fluctuations on Stock Indices in BRICS-T Nations

Abstract

Financial markets and economies are greatly impacted by global risk concerns. It has been noted that globalization has an impact on national stock markets, particularly during times of world crises. In order to reduce global risk factors, VIX, CDS, credit ratings have lately begun to be analyzed. As global risk indicators and credit ratings CDS, VIX were identified. These pertinent variables were then employed as independent variables to find the impact on the stock market returns of the BRICS countries (Brazil, Russia, India, China, South Africa, and Turkey). For every nation, daily data sets pertaining to these factors were collected between 2008 and 2022.

The ARDL model was found to be the top appropriate model for each set of Data after preliminary investigation. With the exception of China, a long-term association between variables was found for the residual nations using the ARDL Bound test technique. This implies that developing market stock market results are influenced by global risk indicators.