Evaluation of the impact of oil price fall on European financial markets

ISSN 2538-6778 (internetinis)The aim of the paper is to investigate the impact of oil price fall on European financial markets. The first part of the paper provides an overview of factors affecting oil prices, oil price changes over the years, the European financial market concept, empirical studies conducted by other authors. The second part of master thesis analyzes the oil price fall on the European financial markets of the selected countries. Index month change analysis, analysis of averages were chosen for the research. The response to market changes were analyzed of European financial markets of the selected countries with and without lag effect. It was found that the market reacts more quickly to falling oil prices. In addition, correlation was done. The results of research showed that the fall in oil prices have higher impact on more developed European financial markets (compared to less developed) and to countries producing oil (in comparison with the countries that do not produce). However, oil prices drop effect is not as high as expected on the financial markets in those countries, which have a large energy sectorEkonomikos ir vadybos fakultetasVytauto Didžiojo universiteta