Development of global stock markets: case of 2015 China’s crisis.

Martin Novak

Master's thesis

Abstract:

Novák, M., Development of global stock markets: case of 2015 China's crisis. Dissertation. Lyon, 2016.The world has been globalized. Free movement of goods, services and capital has caused a time of prosperity and peace. Yet it might seem, as people are afraid. Large investments, incentives and mutual aid are standing on the scale pan against growing nationalism, protectionism and a fear from unknown. Once strong national states wanting to influence developing economies are now under a pressure from those developing countries and trying to manage themselves in the global world. The year of 2015 showed that what appeared to be Chinese crisis only, has far bigger consequences than everyone expected and that education, critical thinking and realization that everything is interconnected has become more important than ever before. Theoretical part of the literature overview focused on stock markets and business cycles. The empirical evidence of connection among world financial markets and business cycles is provided.Analytical part aims to determine whether and if so, then how big of an impact the crisis had on selected stock markets and commodities. Data were precisely selected, and compared in statistical and econometrics calculations with additional valuables as exchange rate of USD and CNY. Hypotheses were selected and thus that the Chinese crisis had significant impact on selected markets and commodities. Concerning the conclusion, Chinese crisis did meet the assumptions and had a significant impact on Dow Jones Industrial Average, Standard & Poor's 500 and NYSE Oil & Gas index. However, an impact on NYSE Gold index was not proven.

Keywords

Stock markets, subjects of trading, stock market indexes, business cycles, China, Shanghai stock exchange, 2015 Chinese crisis

Language used: English

Date on which the thesis was submitted / produced: 26. 11. 2016

Thesis defence

• Supervisor: Ing. Petr Procházka, MSc Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management