ABSTRACT
In this chapter, the aim of analysis is to determine how closely the Central European equity markets are integrated with the equity markets in the US, the UK and the euro area. The chapter also investigates the correlation between changes in the US S&P500, UK FTSE100, DJ EUROSTOXX 50 yields and the yields of Polish and other main Central European equity markets measured by the CECE EUR index yield. The author has formulated the following hypothesis: the Czech, Hungarian and Polish equity markets are more integrated with the US and UK equity markets than with the euro area market. The author tries to determine what the implications of such close integration are. Econometric methods are applied in the analysis, and the analysis has confirmed the hypothesis.
