The effect of Oil prices on the performance of stock markets of the Assignment

The effect of Oil bells on the performance of gillyflower markets of the GCC countries - Assignment ExampleHowever, the concentration of the studies is in developed economies their analysis focuses on the impact vegetable oil equipment casualty shocks have on spud returns. To determine the link, there should be an assessment of the changes in the prices of crude oil and the effects of such changes on the equity returns especially in Gulf Cooperation Council (GCC) countries. The assessment is both at country-level and industry-level. Studies show that the bank line market in most of the GCC countries shows a significant response to oil price shocks. As per the industries, the shocks have a significant impact on returns of several industries (Mohanty, Nandha, Turkistani, and Alaitani, 2011). A conclusive view of the impact oil prices have on stock prices in GCC countries is, and then, necessary.There GCC is composed of Qatar, Kuwait, Oman, Saudi Arabia, the united Arab Emirate s and Bahrain. The Countries mainly import manufactured goods from other developed and developing nations. Any fluctuations in oil prices could therefore indirectly cause effects to GCC markets as they affect the prices of the products they import. A rise in prices of oil whitethorn lead to changes in interest rates and all types of investment. The effects of oil price shocks on the returns of stock depend more on how the negative and positive effects outweigh each other (Ravichandran and Alkhathlan, 2010). The GCC stock markets have limitations such as smaller number of listed firms, low sector wise diversification, and large institutional holdings. A key point to note is that GCC countries depend on oil to different extents and the efforts towards diversification, and economic slackening differs in the different countries (Arouri, Lahiani, and Bellalah, 2010). That is despite them having several characteristics in common.Among the six members of the GCC, there is a positive like ness between changes in oil prices and stock market returns in three countries. The countries are Oman, Qatar, and the United Arab