The international spread of COVID-19 stock market collapses

We identify periods of mildly explosive dynamics and collapses in the stock markets of 18 major countries during the first wave of the COVID-19 pandemic of 2020. We find statistical evidence of instability transmission from the Chinese stock market to all other markets. The recovery is heterogeneous and generally non-explosive.

Automated summary

During the first wave of the COVID-19 pandemic in 2020, we observed periods of mildly explosive dynamics and collapses in the stock markets of 18 major countries. Statistical evidence shows instability transmission from the Chinese stock market to all other markets. The recovery process is heterogeneous and generally non-explosive.