Analysis Of Transnational Linkage Of Stock Market Bubble

In the context of economic integration,the international financial market shows the characteristics of less strict financial regulation and deeper financial innovation.The degree of financial market integration is increasing,and the dependence on the financial market is becoming more and more complex and diversified.In particular,the performance of the stock market under the impact of external events is often more complex and profound than in ordinary times.The correlation between stock markets is becoming stronger and stronger.In other words,the fluctuation of one market will also affect other stock markets and affect the whole body.Any financial bubble may have a huge impact on the global market.The bursting of the bubble in the stock market has brought a lot of harm and far-reaching impact.Therefore,it is undoubtedly of great significance for the stability of the international financial market to study how to identify and define the bubble stage of major international stock markets and their linkage.In this paper,the Logarithmic Periodic Power Law(LPPL)model is used to identify and measure the Sino US trade frictions and the stock market bubble before and after the covid-19 event,and to characterize its emergence and development.In addition,the complex network constructed in this paper takes the major international stock exchanges as the nodes,and its weight edge is determined by the conversion of the correlation coefficient of the stock index return.Finally,the paper uses the minimum spanning tree algorithm to construct the central network and identify the financial network center.The main conclusion of this paper is that the bubble exists in the main stock markets for a long time,and it presents different bubble states in different stages.Major international economic events,especially the outbreak of such negative events as the COVID-19,will have a great impact on the global stock market in the short term,and recovery will take a long time.In addition,according to the research,it can be seen that there is linkage between the foam states in the financial markets of various countries,but the linkage is weaker than that between the stock index prices.This is because the linkage between the stock market returns is not only caused by the foam,but also contributed by complex factors such as institutional and individual investor preferences from the perspective of behavioral finance.The linkage center of the stock market will also change briefly with the impact of the event.The study found that after the epidemic,the stock markets of South Korea and Germany increased their position in the financial network,but the linkage position of the US stock market was relatively weakened.The main innovation of this paper is that it adopts a different research perspective from previous studies,that is,the transnational linkage between the stock market bubble and the bubble burst;Innovate and integrates the research methods of financial statistics,and combines the LPPL model with complex network analysis;The expansion of the research content and the bubble status of the major markets following the COVID-19 were also analyzed.