Co-movement of commodity futures and stock markets

Authors

  • Yixi Yang

DOI:

https://doi.org/10.54097/gf8fqk26

Keywords:

Commodity Futures, co-movements dynamics, China’s economic expansion, Financialization, VAR model

Abstract

Navigating through the complex interface of commodities and stock markets, this paper elucidates the pivotal role of commodities in sustaining China's expansive economic and infrastructural panorama. Amidst significant urbanization, industrial advancement, and burgeoning population, China's vast commodities sector plays a vital role in satisfying domestic consumption, facilitating export operations, and underpinning sustained growth. Exploring the intricate linkage between commodities and stock markets, the study reveals a positive correlation between commodity futures and stock market dynamics, enriching the discourse on their co-movements within an emerging economy framework like China. The research, while offering invaluable insights into the complexities of these relationships, also lays the groundwork for future studies, inviting exploration into the causal dynamics and global perspectives. The findings, though illuminative, underscore the necessity for holistic, judicious investment and policy decision-making, reminding stakeholders to meticulously consider broader financial landscapes and market peculiarities alongside analytical insights, thus balancing data-driven decisions with strategic foresight in the vast, interconnected world of financial markets.

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References

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Published

22-01-2024

How to Cite

Yang, Y. (2024). Co-movement of commodity futures and stock markets. Highlights in Business, Economics and Management, 24, 2608-2617. https://doi.org/10.54097/gf8fqk26