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

Author

Listed:
  • Michele Costola

    (Université de Venise Ca’ Foscari | Università Ca’ Foscari di Venezia)

  • Matteo Iacopini

    (LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma])

  • Carlo Romano Marcello Alessandro Santagiustina

    (médialab - médialab (Sciences Po) - Sciences Po - Sciences Po, University of Ca’ Foscari [Venice, Italy])

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.

Suggested Citation

  • Michele Costola & Matteo Iacopini & Carlo Romano Marcello Alessandro Santagiustina, 2021. "Google search volumes and the financial markets during the COVID-19 outbreak," Post-Print hal-05031929, HAL.
    • Handle: RePEc:hal:journl:hal-05031929
    DOI: 10.1016/j.frl.2020.101884
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    Cited by:

    1. Diebold, Céline, 2025. "Using Google search data to examine factory automation and its effect on employment," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1301-1328.
    2. Zhou, Tao & Huang, Ziling & Huang, Junkang & Duan, Junshan & Liu, Gang, 2025. "Venture capital intervention and intelligent empowerment: Drivers of corporate green innovation," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    3. Shuyu Zhang & Dunli Zhang & Jianming Zheng & Walter Aerts & Dandan Xu, 2023. "Plus Token and investor searching behaviour – A cryptocurrency Ponzi scheme," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4713-4728, December.
    4. Diaz-Balteiro, L. & Alfranca, O. & Voces, R. & Soliño, M., 2023. "Using google search patterns to explain the demand for wild edible mushrooms," Forest Policy and Economics, Elsevier, vol. 152(C).
    5. Li, Sufang & Xu, Qiufan & Lv, Yixue & Yuan, Di, 2022. "Public attention, oil and gold markets during the COVID-19: Evidence from time-frequency analysis," Resources Policy, Elsevier, vol. 78(C).
    6. Gianluca Anese & Marco Corazza & Michele Costola & Loriana Pelizzon, 2023. "Impact of public news sentiment on stock market index return and volatility," Computational Management Science, Springer, vol. 20(1), pages 1-36, December.
    7. Ruzita Abdul-Rahim & Airil Khalid & Zulkefly Abdul Karim & Mamunur Rashid, 2022. "Exploring the Driving Forces of Stock-Cryptocurrency Comovements during COVID-19 Pandemic: An Analysis Using Wavelet Coherence and Seemingly Unrelated Regression," Mathematics, MDPI, vol. 10(12), pages 1-19, June.
    8. Tatomir, Marija & Hibiki, Norio, 2025. "Herding effect of both global and local crises in BRICS countries," The Journal of Economic Asymmetries, Elsevier, vol. 31(C).
    9. Kerry Liu, 2023. "America's decoupling from China: A perspective from stock markets," Economic Affairs, Wiley Blackwell, vol. 43(1), pages 32-52, February.
    10. Li, Zhaohua & Hu, Baiding & Zhang, Yuqian & Yang, Wanyi, 2024. "Financial market spillovers and investor attention to the Russia-Ukraine war," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    11. Iyer, Subramanian Rama & Simkins, Betty J., 2022. "COVID-19 and the Economy: Summary of research and future directions," Finance Research Letters, Elsevier, vol. 47(PB).
    12. Dash, Saumya Ranjan & Maitra, Debasish, 2022. "The COVID-19 pandemic uncertainty, investor sentiment, and global equity markets: Evidence from the time-frequency co-movements," The North American Journal of Economics and Finance, Elsevier, vol. 62(C).
    13. Michele Costola & Michael Donadelli & Luca Gerotto & Ivan Gufler, 2022. "Global risks, the macroeconomy, and asset prices," Empirical Economics, Springer, vol. 63(5), pages 2357-2388, November.
    14. Emre Cevik & Buket Kirci Altinkeski & Emrah Ismail Cevik & Sel Dibooglu, 2022. "Investor sentiments and stock markets during the COVID-19 pandemic," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-34, December.
    15. Birindelli, Giuliana & Chiappini, Helen & Jalal, Raja Nabeel-Ud-Din, 2023. "SFDR, investor attention, and European financial markets," Finance Research Letters, Elsevier, vol. 56(C).
    16. Papadamou, Stephanos & Fassas, Athanasios P. & Kenourgios, Dimitris & Dimitriou, Dimitrios, 2023. "Effects of the first wave of COVID-19 pandemic on implied stock market volatility: International evidence using a google trend measure," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    17. Qiu, Zhiyuan & Mou, Yilin & Li, Yutong, 2025. "The impact of rural upbringing on household risky financial asset allocation: An analysis based on CHFS," International Review of Economics & Finance, Elsevier, vol. 97(C).
    18. Roni Bhowmik & Gouranga Chandra Debnath & Nitai Chandra Debnath & Shouyang Wang, 2022. "Emerging stock market reactions to shocks during various crisis periods," PLOS ONE, Public Library of Science, vol. 17(9), pages 1-23, September.
    19. Puhr, Harald & Müllner, Jakob, 2022. "Foreign to all but fluent in many: The effect of multinationality on shock resilience," Journal of World Business, Elsevier, vol. 57(6).
    20. Zhao, Guobin & Yuan, Yanzhe & Zhang, Yaning, 2025. "Exploring the mechanism and path of financial Literacy's impact on consumption of middle-aged and elderly rural residents: Micro-evidence from CHFS data," International Review of Economics & Finance, Elsevier, vol. 97(C).
    21. Mariem Talbi & Monia Mokhtar Ferchichi & Fatma Ismaalia & Samia Samil, 2024. "Unveiling COVID-19’s impact on Financial Stability: A Comprehensive Study of Price Dynamics and Investor Behavior in G7 Markets," International Journal of Economics and Financial Issues, Econjournals, vol. 14(1), pages 216-232, January.

    More about this item

    Keywords

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    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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