On Saturday, the US and China released a joint statement announcing that "China will significantly increase purchases of US goods and services" and that "both sides have agreed to promote two-way investment and create a fair, level playing field". How the Analysis by Investor's Business Daily shows that for some companies this had an immediate positive effect on their share price. In the Steel industry however, the news was not received quite so positively.

The markets reacted with a price recovery on Monday. US companies such as Boeing, Caterpillar and John Deerellegten3.6 per cent, 2.1 per cent and 2.0 per cent respectively. All three are highly dependent on trade with China. Boeing, for example, could benefit from $1.1 trillion worth of aircraft purchases over the next twenty years, according to Investor's Business Daily. In the world's largest construction equipment market, Caterpillar has also invested heavily in China. The other side of the story is steel. U.S. Steel Corporation lost 3.8 per cent, while AK Steel also fell by 5.1 per cent.

This is certainly not the end of the story, as many details still need to be clarified - and both sides need to stick to them.