Hours after President Trump said Sunday he had "second thoughts" about escalating the trade war with China, the White House sought to explain his remark because it was...Politicsread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
President Donald Trump said that he would have a major trade deal with U.K. after it leaves the European Union.Politicsread more
President Donald Trump said Sunday he was not happy after North Korea launched short-range ballistic missiles over the weekend.Politicsread more
The Goldman Sachs technology M&A team, led by Sam Britton, has cashed in on its software focus and decades of experience to dominate 2019's biggest deals.Technologyread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
One reason for the trend is due to Chinese markets' exposure to non-energy commodities, according to a study published in August by Axioma, a risk and performance analytics provider.
"The tariff spat caught China more exposed to changes in broad non-energy commodity prices, and the recent downturn in these commodities has weighed heavily on the Chinese market," said Diana R. Rudean, director of applied research at Axioma.
Shifts in the commodity trade are early indicators of global economic health and trade flows and are especially pertinent in the ongoing trade dispute as China consumes much of the world's raw materials.
"Indeed, the U.S. — at least the U.S. equity market — appears to have largely skirted the effects of the trade war," Rudean added in the report.
As a comparison, the American Russell 1000 is up about 10 percent in 2018 while China's CSI 300 — an index measuring 300 stocks on the Shanghai and Shenzhen exchanges — is down about 15 percent in the same period. The Russell 1000 represents the top U.S. companies by market capitalization.
In fact, the sensitivity of the Russell 1000 to the GSCI Non-Energy Index has been trending downward since 2010, indicating that changes in broad commodity prices had a declining impact on the U.S. market, wrote Rudean.
In contrast, the CSI 300's sensitivity to commodities fluctuated, Axioma found.
Non-energy commodity prices started falling after the trade war between the world's two largest economies heated up in June. The GSCI Non-Energy Index is down 4.5 percent so far this year.
The U.S. market's declining sensitivity to non-energy commodities could be due to reasons such as deregulation, tax cuts and protectionist policies such as tariffs boosting investor sentiment in the U.S. market.
Those factors "may have decoupled the moves of the market from the moves of the global non-energy commodities," Rudean told CNBC.
"Also, as the U.S. market rose after November 2016, it may have moved towards stocks that are less sensitive to the commodity market. For example, technology stocks became a bigger part of the Russell 1000, and their lower sensitivity to commodities may have also drawn down the index sensitivity to commodities," she added.