The impact of the pandemic on the international financial market

UDC 336

Authors

A. C. VOROSHKEVICH,
member of the scientific and creative group, 4th year, Financial University under the Government of the Russian Federation Federation, Moscow
V. V. SMIRNOV,
Candidate of Economic Sciences, Associate Professor, Financial University under the Government of the Russian Federation Federation, Moscow

Abstract

Purpose of the study. At its core is the COVID-19 crisis, it is not a fi nancial or economic crisis, but a health crisis that has affected the lives of millions of people around the world. However, due to its impact on supply and demand as well as the crisis, COVID-19 quickly turned into a major fi nancial and economic crisis. The purpose of this study is to check whether the pandemic has affected the US economy, and more specifi cally the international market.
Methods. This research article assesses the impact of the pandemic that has hit the world since early 2020 on the US international fi nancial market. An attempt was made to compare the performance of Covid-19 with the development of fi nancial markets and the real economy.
Results. It is important to note that after the peak of the pandemic, fi nancial markets recovered quickly. While the S & P500 has recovered by August 19 and continues to rise. Since then, the yield on US corporate bonds (compared to the yield on 2020-year Treasury bonds) has shown sharp gains in February and March 2020, but has rebounded quickly and returned to pre-crisis averages in the same year. Took quick action to prevent a full-fl edged fi nancial crisis. However, these models have given rise to thinking about the possible interactions between fi nancial markets and the real economy and the relevance of fi nancial market indicators for economic recovery.
Conclusion. The rapid recovery of fi nancial markets in the Reserve States can at least be attributed to the Federal Reserve, which took swift action to stave off a full-fl edged fi nancial crisis. However, these patterns have led many to speculate about the possible disconnect between fi nancial markets and the real economy and the relevance of fi nancial market indicators for recovery.

Keywords

international fi nancial market, pandemic, globalization, international fi nancial institutions, competition.