Skip to comments.Dow plunges 875 points after China devalues its currency
Posted on 08/05/2019 11:47:14 AM PDT by Innovative
The Dow tumbled 875 points and global stocks were in disarray on Monday after China escalated the trade war with the United States.
The Chinese government devalued the yuan to fall below its 7-to-1 ratio with the US dollar for the first time in a decade Monday. A weaker currency could soften the blow the United States has dealt China with its tariffs.
The weak yuan ignited fear on Wall Street that a currency war has begun or that the United States would respond with even higher tariffs, prolonging the standoff with China and potentially weakening the global economy. Investors are particularly concerned that the Trump administration could try to devalue the dollar, sparking a currency war that could weaken Americans' purchasing power.
(Excerpt) Read more at cnn.The Dow tumbled 875 points and global stocks were in disarray on Monday after China escalated the trade war with the United States.com ...
Remember the crash of 2000 (I think), it looked horrible, but it eventually recovered and went way above it's high at the time.
See Yahoo finance for the other indices:
I may be wrong about this, but wouldnt the devaluation of a foreign currency cause a simple drop in the U.S. market value for any company that has assets in that foreign country listed on its books?
The Dow supports China more than the US ,just to blame it on Trump ,D’oh
It was 2008!
They’ve been manipulating their currency for years. Decades.
Trump needs to tie the tariff rate to the yuan. Let them decide how much pain they wish to endure.
Price of gold doesn’t seem to care much
China and in your face currency manipulation
Yup. I’m thinking a bounce on Wednesday. Then movements won’t be quite as sharp up or down. Unless there’s new news... And the markets are at the mercy of algorithmic trading. If I had it do over again, I would have just bought real estate.
almost everyone wishes it possible to avoid a real trade war. so far, not much has happened....
not a real trade war yet
devaluing one’s currency means you can buy less from other countries and you have to export more to just keep even or else it lowers your living standards
so, yes the communist Chinese can do this awhile...but it has as many adverse impacts on their own country as it does anyone else
not a good long-term solution for Beijing. they will be better off working out a fairer trading relationship with USA. i believe they are mostly quite smart and will soon realize this is the way for them to proceed
Trade wars are good and easy to win.
China wants their boy Biden for President!
Yup - gold tells a better tale of real panic...
These are just pigeons getting fleeced by the pro sharks in the market.
Computers trading should be banned!............
It is correcting from its all time high, so it isn’t a big thing. Can’t really even call it a sale yet.
If anyone is worried about inflation, China has just volunteered to pay for the tariffs themselves rather than send it through to the US consumer. We should not expect inflation because of this.
This is a small blip. Considering where the dow is now at, I don’t think any change less than 5,000 is worth noting. Some days it goes up, others down. Media can make hay about it but this is normal.
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