The global financial market is shaken by the appearance of the Covid-19 virus. This research has made the estimation regarding the Covid-19 impact on the financial market behavior of the UK. From the S&P 500 index, the returns that are generated have revealed the results that have been affected greatly in the UK by the lockdown that Covid-19 is owned. In 2019 in the month of December in Wuhan following the outbreak of the spectacular spread and scale of the deadly virus which is named corona virus. Because of this, authorities are forced in the UK to put the implementation of the lockdown in rounds that harm the economy majorly. With the contamination of Covid-19, the association of the high socio-economic costs that are noticed has triggered risk aversion at an extreme stage globally. Across the financial market because of this, the sharp liquidity squeeze is noticed, and many valuations of the asset class are dumped massively. For the global financial market if the presence of a panic reaction is noticed then it was expected primarily of the uncertainty which is high surrounding the shock of the economy. In an unparalleled way, the extended collapse presence is noticed, however, and it is illustrated by the major stock market indices worldwide meltdown. In this research, the steps that are going to be followed are the introduction, context, research question, objective, relevant academic literature consulted, and research methodology which includes research philosophy, research method, data collection, and ethics.
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To the other historical pandemics, the interest and fear are led by the World Health Organization (WHO) depending on the Covid-19 outbreak and in form of the pandemic making the declaration of it. In the previous 300 years, 10 pandemics are reported in form of repeated periodic patterns which is non-regular. Irrespective of colour, race, nationality, and religion the effect of the Covid-19 pandemic is noticed in all human beings. Across race, gender, and borders Covid-19 has affected every person (Rubbaniy et al. 2023). People's life has got changed of people in the UK and all around the world this pandemic is uncontrollable. Because of these businesses, offices, universities, worship, and schools have e got shut down by the government of the UK and all around the world. The worship here indicated the temples, churches, and mosques. Because of this shutdown, the financial market in the UK has faced losses majorly and gone down drastically (Gherghina & Armeanu & Jolde?, 2020). The major cities in the UK have gone into lockdown by the government of the UK (GOVT UK) for this pandemic. The unwanted gathering socially in the local area for various events named tourist spots, national celebration sports events, and marriages, funerals, etc is strictly prohibited by the government of the UK. For the imposing of these restrictions at home people are forced to stay (Paterson et al. 2023). In the current situation in rapid way and in an unprecedented way, the presence of Corona virus (Covid-19) is noticed because of which the trials of the treatment methods present. Regarding the Covid-19 pandemic, the pattern of information clarity is not present (Izzeldin et al. 2021). The pepper medication to counter this pandemic is not present and day by day because of this people all around the UK are suffering from panic and fear (Khanthavit 2020). In the UK majorly economic activities have gone reduced for the appearance of the Covid-19 pandemic. The economy of the world has got affected adversely because of this also through the reduction in trade, shortage of food that is increased locally, and tourism. [Referred to appendix 1]
The research question regarding this topic are mentioned below
Q1: How the financial market of the UK has suffered from the Covid-19 pandemic effect?
Q2: How effectively the government of the UK is tackling the COVID-19 pandemic in the UK?
Q3: How the financial markets are going to recover from the Covid-19 pandemic in the UK?
Q4: What is the effect of the lockdown on the people in the UK? [Referred to appendix 4]
3.2 Research objectives
To determine the suffering of the financial market of the UK from the Covid-19 pandemic.
To determine the way the UK government is tackling the pandemic of Covid-19 in the UK.
To determine the way the financial market is going to recover from the Covid-19 pandemic in the UK.
To determine the effect of the lockdown on the people in the UK.
Relevant Academic Literature Consulted
Through the academic literature consultation, those are relevant to this research the critical aspect and into the problem the detailed insight is also provided through this. By several authors, this research is conducted, and similar aspects are explored by the researchers regarding the investigation of Covid-19 and its influence on the financial market in the UK.
According to Wang et al. (2022) the unprecedented repercussions, of the novel corona virus has lead forward many major negative effects. The policymakers, the public, and the investors are aware of the spread of the Corona virus in the United Kingdom (UK) in terms of the consequences and external uncertainties' occurrence of this virus. In the UK the stock market regarding the pandemic, there is noticed an aggregated impact (Wang et al. 2022). Because of this in the households, the change is noticed in the spending behavior and for making the investment the people are becoming more resistant and defensive (Ngwakwe 2020). That is the reason the financial market in the UK has gone down.
According to Pourmansouri et al. (2022) in 2019 with the illness of coronavirus, the association of the pandemic is noticed. Because of this in contemporary life, every aspect of the multitude of perturbations is created. On the global economy, the possible impact of Covid-19 was present between 5.8 trillion United States dollar (USD to 8.8 trillion dollars USD. This is 6.4% to 9.7% equivalent of the gross domestic product by the Asian Development Bank the proximity that is made (Limba & Rijoly & Tarangi, 2020). The consumption gets disrupted, the effect of corona virus has increased and the government of the UK is taking appropriate steps to counter it (Pourmansouri et al. 2022). Because of the appearance of corona virus (Covid-19), many people all around the UK find that making an investment in this unwanted situation will provide them more loss and that is the reason in the financial markets are not making any investments due to this the financial markets are going down continuously and suffering major losses also.
According to Kusumahadi & Permana (2021) to the various events different the response is provided by the stock market. Depending on the information and the concurrent conditions the stock price changes are noticed (Kusumahadi & Permana, 2021). In the prices of stock, the major effect is put by external and internal factors. For a company and for a country in form of the fundamental aspect the relevant internal factors are present and these are dividends and income (Zhang et al. 2022). The prices of stocks also get impacted by several factors those are external and among them, and one of the major examples is the investors' obtaining of news or information that in negative and positive in both states are present (Aslam & Mohti & Ferreira, 2020). Externally and internally both ways stock prices are going down and the financial market in the UK is suffering major loss for the appearance of the Covid-19 pandemic. [Referred to appendix 2]
Proposed Methodology
5.1 Research philosophy
On various philosophies of the researchers, research can be based on the strategic objective easily reached that is defined based on the prosed and problem base research. The other aspect of progress is determined by the research philosophy identification with the research. For this research to be conducted fully and appropriately the adoption of different philosophies are done and these are interpretivism, realism, positivism, pragmatism, constructivism, and objectivism.
The positivism philosophy and the realism philosophy are followed in this research. The positivism and realism philosophy are going to be used in this research because based on the analysis and testing of the statement of hypothesis the development of the research question is done and regarding the context of this research better knowledge is going to be provided through the quantitative explanation. From the analysis of the specific areas, the effect of Covid-19 in the UK financial markets are going to discussed in this research.
5.2 Research method
In research, various methods are used in general and those are the multi-method, mono-method, and mixed method. In this research, the mixed method approach is used through which quantitative and qualitative data will be explained. The mixed method is going to be used in this research because through the secondary analysis, the data are going to be gathered from the recent past and what is going to happen in the future, but through the primary analysis the exact data regarding this research are possible to be gathered in a huge number and proper explanation is going to be provided by this with help of the questionnaires.
5.3 Data collection
The data collection method outlines the procedures and resources for the collection of appropriate information based on the topic depending on which the overall analysis of this research is done. In research generally, both primary and secondary data are possible to be used. In this research, both secondary and primary data analysis method is going to be used.
From the various secondary sources, the collection of the secondary data is based on strategic research and those secondary sources are the articles, journals, and websites. Through the use of secondary sources, the investigation of Covid-19 and its influence on the financial market are discussed.
For the primary analysis, the survey will be done on 57 respondents and based on the responses from those respondents the questionnaires are going to be prepared for further analysis. By choosing the method of survey and by developing the questionnaires the exact number of responses is possible to gather regarding this research and the current situation of the UK financial market is also going to be known from this. Through the secondary data analysis with the help of Journal, articles, and websites the various authors point of view regarding this similar research are going to be known because different authors have different thought regarding this research.
To facilitate the process of data analysis the sources of secondary data are recorded and accumulated.
5.4 Ethics
In research, there are noticed the presence of various stages and in each of these stages proper there are required to maintain proper ethics. With ethical consideration, this research is incorporated effectively.
For the analysis and data collection, the chosen strategies and procedures of research that are present have complied with all standards and policies for conducting the research. No data manipulation is done in this research and with honesty and truthfulness, this research is conducted. For conducting this research no harm has been caused to the environment and the community. [Referred to appendix 3]
References
Journals
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