Google search volumes and the financial markets during the COVID-19 outbreak

Michele Costola; Matteo Iacopini; Carlo R.M.A. Santagiustina

doi:10.1016/j.frl.2020.101884

Google search volumes and the financial markets during the COVID-19 outbreak

Michele Costola
, Matteo Iacopini
, Carlo R.M.A. Santagiustina

Econometrics and Data Science

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

During the outbreak of the COVID-19, concerns related to the severity of the pandemic have played a prominent role in investment decisions. In this paper, we analyze the relationship between public attention and the financial markets using search engine data from Google Trends. Our findings show that search query volumes in Italy, Germany, France, Great Britain, Spain, and the United States are connected with stock markets. The Italian Google Trends index is found to be the main driver of all the considered markets. Furthermore, the country-specific market impacts of COVID-19-related concerns closely follow the Italian lockdown process.

Original language	English
Article number	101884
Pages (from-to)	1-7
Number of pages	7
Journal	Finance Research Letters
Volume	42
Early online date	17 Dec 2020
DOIs	https://doi.org/10.1016/j.frl.2020.101884
Publication status	Published - Oct 2021

Funding

Matteo Iacopini acknowledges financial support from the EU Horizon 2020 programme under the Marie Sklodowska-Curie scheme (grant agreement no. 887220).

Funders	Funder number
Marie Sklodowska-Curie scheme
Horizon 2020 Framework Programme	887220

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 3 Good Health and Well-being

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10.1016/j.frl.2020.101884

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title = "Google search volumes and the financial markets during the COVID-19 outbreak",

abstract = "During the outbreak of the COVID-19, concerns related to the severity of the pandemic have played a prominent role in investment decisions. In this paper, we analyze the relationship between public attention and the financial markets using search engine data from Google Trends. Our findings show that search query volumes in Italy, Germany, France, Great Britain, Spain, and the United States are connected with stock markets. The Italian Google Trends index is found to be the main driver of all the considered markets. Furthermore, the country-specific market impacts of COVID-19-related concerns closely follow the Italian lockdown process.",

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AU - Costola, Michele

AU - Iacopini, Matteo

AU - Santagiustina, Carlo R.M.A.

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AB - During the outbreak of the COVID-19, concerns related to the severity of the pandemic have played a prominent role in investment decisions. In this paper, we analyze the relationship between public attention and the financial markets using search engine data from Google Trends. Our findings show that search query volumes in Italy, Germany, France, Great Britain, Spain, and the United States are connected with stock markets. The Italian Google Trends index is found to be the main driver of all the considered markets. Furthermore, the country-specific market impacts of COVID-19-related concerns closely follow the Italian lockdown process.

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DO - 10.1016/j.frl.2020.101884

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ER -

Google search volumes and the financial markets during the COVID-19 outbreak

Abstract

Funding

UN SDGs

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