The Impact of Oil Prices Economic Policy Uncertainty on Stock Market Returns: Evidence from G7 Countries
Year: 2026
Type: article
Abstract: This study attempts to explore quantile regression to investigate the impact of oil prices, economic policy uncertainty on stock market returns, Evidence from G7 countries. to estimate the relationship, the study uses a comprehensive monthly data from Jan 2011 to December 2025 from G7 Countries include (Canada, France, Germany, Italy, Japan, United Kingdom and United States) the data is taken from Reliable sources. Furthermore, this study will apply the Quantile Regression model to find the impact of oil prices and EPU on market returns of G7 countries. the findings expose that an increase in oil prices significantly impacts the returns of all countries. an increase in oil prices consistently exhibits a positive impact, with insignificant effects in lower and medium quantiles and significant effects in higher quantiles. Conversely, an increase in oil prices usually decreases stock market returns across all quantiles. This study offers valuable information for investor who get guide line and investment decision. This study supports financial institutions and portfolio managers make effective strategies. Moreover, it also provides direction to policy implications and strategies for decision makers and entrepreneurs. Keywords: WTI crude oil, Economic Policy Uncertainty, stock returns, Quantile Regression, G7 Countries
DOI: 10.63075/5a14gh95
Authors: Ahsan Ali, Shakeel Ahmed*, Zulfiqar Ali
Institution: HITEC University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7216169552