Discovering the Relationship between Oil, Metals

and US Stock Market: A Case Study of Before and

After Financial Crisis
Presented to : DR AMMAR AFTAB RAJA
Presented by : ASMA KHAN
INTRODUCTION

 The purpose of this paper is to investigate the relationship between

oil,metal and US Stock Market.Oil [rices has affected any economy directly
and indirectly.For detailed explanation pre crisis,during crisis and post crisis
period is considered.
 The US Stock Market is the most engaging market with high trading volumes
and had detailed quality data..Financial investors have stepped in the
commodity market to explore more opportunities leading toward profit
 Due to unexpected events and shortage of assets attracted investors
towards commodity market and they found out it as “safe heaven” (Baur
and McDermotl , 2010)
 Oil and among metals gold aremost traded commodities and also
important economic indicator.As a result of economic downturn major
commodity prices have seen fall in price during the financial crisis.
 .In 2008 O’Neill et all explained that the impact of risisng oil prices has led to
declining in stock return of US,UK and France.
 Oil and other valuable metals are priced in US dollars and included in the
portfolios of most serious investors.
Problem Statement:

 Very less work has done on the stock price movement and metal price like
silver.
 In this paper we have discussed the relation between oil metal and stock
market by using the price momenyts of oil,metal and stock index.
Research Objective:

 The objective of this study is to investigate the linkage and casuality

relationship between oil,metal and US stock market and to explore the
changes in price of oil, metal on US S&P 500 in pre crisis , during crisis and
post crisis period.
 Research Questions:

 To what extent US market is affected by changes in oil price before the financial crisis?
 To what extent metl price has impact on US market before the financial crisis?
 To what extent US market is affected by changes in oil price during the financial crisis?
 To what extent metl price has impact on US market during the financial crisis?
 To what extent US market is affected by changes in oil price after the financial crisis?
 To what extent metl price has impact on US market after the financial crisis?