US-China trade war & its impact on stock market

Abstract

US-China trade war is a hot topic these years because it’s enormous influence to the international economic market. As the relationship between the US and China keeps going intensive, the markets in both countries and around the world have been affected to varying degrees. The influence can be reflected in many different aspects. This research focuses on it’s influence on the stock markets in the US and China. It chose three important points when China or the US posted negative policies to the import from the other countries. The indices in the stock markets of two countries and the stock price of two important technological companies: Huawei and Apple are analyzed to figure out the reflection of the stock markets of the two countries to those trade war policies. This paper finds out that in three time points, the three policies related to the trade war all have significant influence to the American index, but only one of the policies has the significant influence to Chinese index. Regarding to the influence to the Huawei and Apple stock prices, Apple’s stock price was influenced more by the trade war than Huawei’s stock price.