Impact of Macroeconomic Variables on Stock Market Indices Value: A Cross-Country Indices Study

Abstract

Complete unpredictability and the contagion effect of stock markets could pose significant challenges for the entire financial markets of the world. Moreover, it is an incontrovertible truth that the variations in stock market indices is an integral part of the dynamics of economic activity and can propel social moods and expectations. In fact, the stock market has predicted 10 out of the last 3 recessions.