What a Relief

The global financial market rallies on the US-China agreement at the G20 meeting in Argentina. The tension between the US and China, these two powerful countries, dragged down the global financial market as well as the entire global economy. China and the US have been many countries' major trade partners , and some countries were forced to choose their positions between these two global power which would be harmful despite their choices. Though the two countries' agreement does not mean that there will be no more tension between these countries, it is definitely a relief for the global economy.

Since the US launched the trade war on China, the financial markets became much more volatile, especially the Chinese stock markets including the HK stock market, dropped sharply. The US stock had been performing relatively well but in November the entire gains throughout 2018 were wiped out, and we could not say that the tension between the US and China had no impact on this wipe-out. In addition, though the market did perform relatively well, the American companies have changed many of their strategies to adapt the changes in the US foreign policy; therefore, it is completely fair to say that this agreement provides some degree of future insurance (lowers the corporate risk for the near future). The US stock market might not have dropped as much as other financial markets did, but it rallies just like any other financial market on this agreement between China and the US, implying that investors in the US also think that this is a piece of great news for the US companies as well as the US economy.

Overall, almost everyone should be willing to see the US and China has come to this agreement.  Even the agreement will not affect the US jobs, actually the tension between China and the US can hurt jobs; because the multiple effects caused by more trades and more businesses and greater revenues can bring more jobs to the labour market and vice versa.