Analysing the changing relationship between the Brazilian stock market and global economic indicators

This study investigates the relationship between the Brazilian stock market and four independent variables, specifically the US stock market, the Mexican stock market, the exchange rate of the US dollar in terms of Brazilian Real and oil prices. Graphical illustrations of the movement between the Ib...

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Main Author: Davey, Paul Philip
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2007
Subjects:
Online Access:https://eprints.nottingham.ac.uk/21331/
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author Davey, Paul Philip
author_facet Davey, Paul Philip
author_sort Davey, Paul Philip
building Nottingham Research Data Repository
collection Online Access
description This study investigates the relationship between the Brazilian stock market and four independent variables, specifically the US stock market, the Mexican stock market, the exchange rate of the US dollar in terms of Brazilian Real and oil prices. Graphical illustrations of the movement between the Ibovespa and each independent variable were used to identify ten sub periods where the relationship was believed to have changed in some way. A preliminary multiple regression analysis found that changes in all of these independent variables with the exception of oil prices are significant in explaining changes in the principal Brazilian stock index, the Ibovespa. Further simple regressions were run between the Ibovespa and each independent variable for each sub period. Some evidence in favour of a non constant relationship was discovered. This study also suggested that whilst a relationship appears to exist between the Ibovespa and these variables, the nature of this relationship is not consistent and is in fact changing through time. Tests were conducted using a CUSUM technique to identify when structural breaks in these relationships occurred, however this technique proved to be unreliable for this purpose leading to the conclusion that a more sophisticated technique is required in order to identify when the relationships are breaking down.
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spelling nottingham-213312018-02-02T14:41:41Z https://eprints.nottingham.ac.uk/21331/ Analysing the changing relationship between the Brazilian stock market and global economic indicators Davey, Paul Philip This study investigates the relationship between the Brazilian stock market and four independent variables, specifically the US stock market, the Mexican stock market, the exchange rate of the US dollar in terms of Brazilian Real and oil prices. Graphical illustrations of the movement between the Ibovespa and each independent variable were used to identify ten sub periods where the relationship was believed to have changed in some way. A preliminary multiple regression analysis found that changes in all of these independent variables with the exception of oil prices are significant in explaining changes in the principal Brazilian stock index, the Ibovespa. Further simple regressions were run between the Ibovespa and each independent variable for each sub period. Some evidence in favour of a non constant relationship was discovered. This study also suggested that whilst a relationship appears to exist between the Ibovespa and these variables, the nature of this relationship is not consistent and is in fact changing through time. Tests were conducted using a CUSUM technique to identify when structural breaks in these relationships occurred, however this technique proved to be unreliable for this purpose leading to the conclusion that a more sophisticated technique is required in order to identify when the relationships are breaking down. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21331/1/07MAlixpd6.pdf Davey, Paul Philip (2007) Analysing the changing relationship between the Brazilian stock market and global economic indicators. [Dissertation (University of Nottingham only)] (Unpublished) Brazilian stock market Bovespa Bolsa S&P 500 Oil prices CUSUM
spellingShingle Brazilian stock market
Bovespa
Bolsa
S&P 500
Oil prices
CUSUM
Davey, Paul Philip
Analysing the changing relationship between the Brazilian stock market and global economic indicators
title Analysing the changing relationship between the Brazilian stock market and global economic indicators
title_full Analysing the changing relationship between the Brazilian stock market and global economic indicators
title_fullStr Analysing the changing relationship between the Brazilian stock market and global economic indicators
title_full_unstemmed Analysing the changing relationship between the Brazilian stock market and global economic indicators
title_short Analysing the changing relationship between the Brazilian stock market and global economic indicators
title_sort analysing the changing relationship between the brazilian stock market and global economic indicators
topic Brazilian stock market
Bovespa
Bolsa
S&P 500
Oil prices
CUSUM
url https://eprints.nottingham.ac.uk/21331/