Determination of the Relations Between European Central Bank Interest Rates and EURONEXT 100 Index

Abstract

The Euronext stock exchange contributes significantly to the expansion of the European capital market and economic growth. Euronext exchange is the largest stock exchange in Europe. The European Central Bank (ECB) monitors, in particular, the development of wages, interest rates and other indicators using economic analysis. When the literature is examined, there are many studies examining the relationship between country interest rates and the stock market. There are some studies in the literature based on the Euronext stock exchange. However, no study has been found in the literature examining the relationship between the Euronext100 index share value and ECB interest rate. The aim is to fill this gap in the literature. In this study, the interest rate decisions taken by the ECB in the period covering the period 2000:1 to 2024:3; The existence of an effect on the Euronext 100 index, which includes the most liquid stocks traded on the Euronext Stock Exchange, which was formed by the merger of more than one stock exchange in Europe and whose market value is among the leading stock exchanges in the world, was tested with cointegration analysis. As a result of the analysis, it was found that the changes in ECB interest rates did not affect the Euronext 100 index.