Stock Markets Exposed
Anyone study relationship between global stock markets?
Curious which markets have the most influence on each other out of the major players.. Paris, London, Hong Kong, Tokyo, New York, Frankfurt. Its pretty clear there is some influence, but which is actually leading the others.
Public Comments
- Lots of people have studied global markets. You may want to look at Cam Harvey's web site. He is one of the leaders in research on international markets. In particular, this paper won a prize for his work: "The World Price of Covariance Risk," Journal of Finance 46, (1991): 111-157. As for your final question about which market has the most influence -- smack yourself on the forehead and say "Duh! The US Market, of course."
- NYSE and London SE merged at the end of the last year. both together can now compete against the Asian Stock Exchanges. You can't say which one is pulling which, since it's all interrelated. US Stock market is not as important as it was (it still is, just less) and it's certainly not the most lucrative anymore...so investors take more their money overseas now.
