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Heterogeneous Market Reactions of the G20 Stock Markets to the Hamas-israel War

Author

Listed:
  • Mine Aksoy

    (Yalova University)

  • Mustafa Kemal Yılmaz

    (İbn Haldun University)

  • Övgü Kalkan Küçüksolak

    (Yalova University)

Abstract

This study aims to examine the impact of the hamas-israel conflict on g20 stock markets and gold prices by employing an event study approach. The results show a continuous decline of the stock markets in the following 10 working days in the aftermath of the attack. The country-wise findings indicate that there are no significant abnormal returns in any stock market on the first day following the conflict. For longer event windows (+3, +5, +10), china, france, germany, india, italy, mexico, south africa, türkiye, and the us exhibited negative and significant cumulative abnormal returns (cars), while argentina and russia had positive and significant cars. The findings also reveal that gold preserves its role as a safe-heaven asset during high tension periods.

Suggested Citation

  • Mine Aksoy & Mustafa Kemal Yılmaz & Övgü Kalkan Küçüksolak, 2025. "Heterogeneous Market Reactions of the G20 Stock Markets to the Hamas-israel War," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 40(124), pages 21-35, October.
    • Handle: RePEc:acc:malfin:v:40:y:2025:i:124:p:21-35
    DOI: https://doi.org/10.33203/mfy.1670587
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    References listed on IDEAS

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    1. Boungou, Whelsy & Yatié, Alhonita, 2022. "The impact of the Ukraine–Russia war on world stock market returns," Economics Letters, Elsevier, vol. 215(C).
    2. Tosun, Onur Kemal & Eshraghi, Arman, 2022. "Corporate decisions in times of war: Evidence from the Russia-Ukraine conflict," Finance Research Letters, Elsevier, vol. 48(C).
    3. Bijoy Chandra Das & Fakhrul Hasan & Soma Rani Sutradhar & Sujana Shafique, 2023. "Ukraine–Russia Conflict and Stock Markets Reactions in Europe," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(3), pages 395-407, September.
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    Keywords

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    JEL classification:

    • G0 - Financial Economics - - General
    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G4 - Financial Economics - - Behavioral Finance

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