Phase synchronization between geographically remote stock markets

We have investigated the synchronous movement of stock market indices between geographically remote markets, i.e., between the United States and the countries in Europe. Our results show that the price dynamics between remote countries, indeed, move synchronously. Alos, the effect can be seen more pronouncely for a frequency band corresponding to a major period of eight trading days. This indicates that the dynamics of geographically remote markets can be qualitatively interpreted as two coupled chaotic oscillators. We also quantify the dependencies between two geographically remote financial markets by calculating the measures of the coupling strength and the directionality.