Posted on 08/12/2015 1:47:45 PM PDT by Lorianne
China stunned the world’s financial markets on Wednesday by devaluing the yuan for the second day running, sparking fears that the world’s second largest economy is in worse shape than investors believed. The currency hit a four-year low on Wednesday after the People’s Bank of China set the yuan’s daily midpoint even weaker than in Tuesday’s devaluation. With the bank having said that Tuesday’s move was a “one-off depreciation”, the rapid drop in the value of China’s currency – around 4% in the last two days – dealt a blow to appetite for risky assets, and markets across the region plunged amid concerns that Beijing has embarked on a damaging currency war. Stocks, currencies and commodities came under heavy pressure as money managers feared it could ignite a currency war that would destabilise the global economy.
The Nikkei stock market index in Japan was down more than 1% while the Hang Seng in Hong Kong was down 1.64%. The Australian dollar, often seen as a proxy for the Chinese economy, fell again to a fresh six-year low of US$72.25c, having been sold off heavily on Tuesday. The US dollar, on the other hand, rose strongly again against all Asian currencies. Oil was hit, too, with Brent futures were down 31c at $48.87 per barrel at 0251 GMT. US crude was trading at $43.02 per barrel, down 6 cents from Tuesday when it marked its lowest settlement since March 2009. Key industrial and construction materials nickel, copper and aluminium also hit six-year lows. “China’s currency moves will hurt appetite for risky assets such as equities and commodities,” said Rajeev De Mello, head of Asian fixed income at Schroders in Singapore.
(Excerpt) Read more at theguardian.com ...
No one saw this coming.
humpf... imagine that?
capital will now move to China......
yes, adding ‘unexpected’ tag
I don't like betting against the market and prospering when people lose jobs and money. But it seems to be the only way to get a little investment protection these days.
Sorry for the typo.
sorry it is the opposite, money is running from China
Yeah, say that in a straight face.
Every time China devalues their own currency the U.S. dollar goes way up against every currency in the world.
This makes U.S. companies unable to compete with those of other countries not just China as the other countries can offer much lower prices for the same kind of goods.
China is waging a currency war against the USA:
http://www.marketwatch.com/story/how-the-dollars-rise-led-to-the-yuan-devaluation-2015-08-11
Look at the U.S. Dollar skyrocketing against all other currencies:
Thanks for posting that telling chart.
Looks like a good time to travel to Japan and Europe.
You hit the nail on the head!
This is a low grade currency war that’s getting a bit hotter.
For later
But, but our stock market went up today. Everything’s fine.
Race to the bottom?
Private equity firms have been fleeing China since 2011.
China will be receding as an economic power because by 2030, half the population will be over the age of 50, thanks to their nutty population control policy.
In contrast, half the Indian population will be under the age of 30 by that same year - 2030. Take a guess where international businesses will be selling their products and services and setting up manufacturing plants in the coming 15 years. As it stands today, broadband services can’t keep up with demand coming from India. IMO, there’s a ton of $$$ to be made in India in the next 15 years.
China? Not so much.
Great opportunity for a trip to Australia.
Ridiculous. you have no clue
Ridiculous. you have no clue
Every country in the world as the graph shows is devaluaing their currency except the USA. yeah your Obama is the lone genius. All the Asian countries are just idiots is what you say .WRONG . you and your obama are wrong
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