How the impact of the US-China trade war affect on the stock market

Abstract

The US-China trade war has caused the global economy to become more turbulent since the trade war has started. In this study, I will research what are the reasons to cause the trade war, the factors that will affect on the stock market and how the countries in the world need to do to reduce the risk of the trade war. To exam the factors that would affect the stock market performance, I will use the multiple regression analysis and correlation analysis in this study. After using these models, the results show that the US market and the Chinese market will move together during the US-China trade war. Also, the GDP of the US is an important factor to influence the US stock market and the import amount from China to the US. The exchange rate will change the stock market performance and the bilateral trade volume. However, the transport cost of the goods does not have a significant impact on the market.