The COVID-19 outbreak and stock market reactions: Evidence from Australia.

We examine how the Australian stock market responded to the uncertainties created by the COVID-19 pandemic and whether the stimulus package offered by the Government helped restore confidence in the market. This study finds a negative stock market reaction to the pandemic announcement, however, among two stimulus packages related announcements, the market reacted positively only to "JobKeeper" package. The cross-sectional results suggest that the smallest, least profitable and value portfolios suffered more during the pandemic.