f**********d
发帖数: 4960 | 1 New York (CNN Business)The Dow and the broader stock market is rebounding
Tuesday, after China took steps to ease the budding currency war with the
United States.
China priced the yuan's reference rate at 6.9683 to the dollar on Tuesday, a
hair above the key 7:1 ratio to the US dollar. Although that was the
weakest level for the yuan in 11 years, many Wall Street investors feared
China would price the yuan below that psychological 7:1 barrier.
The managed yuan continued to slide Tuesday, but the pace of its decline
slowed. One dollar last bought $7.0200 yuan in China, and 7.0490 yuan in the
offshore market, where the currency trades more freely.
Late Monday. the United States labeled China a currency manipulator.
But the sentiment is better nonetheless.
The Dow (INDU) traded more than 200 points, or 0.8%, higher Tuesday morning,
while the S&P 500 (SPX) bounced 0.9% higher. The tech-heavy Nasdaq
Composite (COMP), which was hit worst in Monday's selloff, traded 1.2%
higher.
Stock investors also took comfort in the Chinese central bank announcing
plans to issue central bank bills worth 30 billion yuan next week. That
supported China's currency, which bounced back slightly against the dollar
after the announcement.
"Also supporting the markets is probably bargain hunting of companies with
good fundamentals and short-covering elsewhere," wrote Forex.com technical
analyst Fawad Razaqzada in a note.
Asian stocks closed lower, while European stocks are recovering somewhat
Tuesday.
China devalued its currency on Monday, leading it to fall below a key
threshold that had last been breached during the financial crisis. Global
stocks sold off in response and the Dow, S&P 500 and Nasdaq Composite log
their worst day of 2019. The Nasdaq was the worst hit, because tech stocks
would be hit particularly hard by an escalation in the trade war.
But now markets are calming down.
Investors feared the label would eliminate China's incentive to keep the
yuan above the 7:1 ratio to the dollar, setting off a currency war with the
United States. A further devaluation of the yuan could ease the burden of
America's tariffs on China. Wall Street fears a steep drop in the yuan could
escalate the trade war, prompting the United States to raise its tariffs on
China or intervene in the value of the US dollar. | b********n
发帖数: 38600 | 2 Mummy, Mummy IMF, that China is bullying us. What a bunch of pathetic
pussies the USA is.
It was only a week ago, Trump was vocally slagging off the Fed, to drop the
interest rate by 0.5% (or bps whatever that means) to lower the US$ strength
. |
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