Conditional Dependence between Non-Ferrous Metallic Components and Global Uncertainties: Insight from the Nickel Crash
John Kingsley Woode*, Ayamba Simon Bukari*, and Audrey Foriwaa Adjei*RETRACTED
ABSTRACT. Drawing insights from the nickel crash, the study assessed the impact of the world uncertainty index (WUI) on metals while controlling for sentiments (VIX), oil volatility (OVX), and policy uncertainty (USPU) using weekly data from January 2016 to January 2024 through varying quantile regressions (QR, QQR, and CIQ). The QR and QQR unveiled a weak adverse influence of WUI on all metals, with zinc (lead) exhibiting a weak, insignificant positive (mixed) nexus, which suggests the incapacity of metals to hedge (safe havens) during normal (turbulent) periods, with a few exceptions. The diverse coefficients observed in metals underscore the adaptive and heterogeneous nature while disputing the established haven status. Despite WUI's modest influence on metals, it is imperative for stakeholders to heed WUI index fluctuations for investment planning, recognising that other market drivers exist. These findings bear significance for investors and metal-reliant businesses, commodity-driven economies, regulatory bodies, and risk management frameworks.
JEL codes: E51; H81
Keywords: industrial metals; uncertainties; market crash; time-varying; quantile regression
How to cite: Woode, J. K., Bukari, A. S., and Adjei, A. F. (2024). “Conditional Dependence between Non-Ferrous Metallic Components and Global Uncertainties: Insight from the Nickel Crash,” Economics, Management, and Financial Markets 19(3): 21–56. doi: 10.22381/emfm19320242.
Received 27 June 2024 • Received in revised form 8 July 2024
Accepted 8 July 2024 • Available online 25 July 2024