Left Menu
Development News Edition

GLOBAL MARKETS-Global stocks deepen losses as U.S. brands China currency manipulator

Reuters | Updated: 06-08-2019 05:43 IST | Created: 06-08-2019 05:42 IST
GLOBAL MARKETS-Global stocks deepen losses as U.S. brands China currency manipulator
Image Credit: StoryBlocks

Global stocks extended their already substantial losses and the offshore yuan hit an all-time low on Tuesday after Washington designated Beijing a currency manipulator in a rapid escalation of the U.S.-China trade war. U.S. Treasury Secretary Steven Mnuchin said on Monday the government had determined that China is manipulating its currency, and that Washington would engage with the International Monetary Fund to eliminate unfair competition from Beijing.

The Trump administration's dramatic move against China hastened the risk aversion seen in global markets this week. On Monday, China let the yuan slide in response to the latest U.S. tariff, which is expected to further aggravate trade tensions between the world's two largest economies. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.75% to its lowest since January.

Japan's Nikkei shed 2.8%, Australian stocks fell 1.8% and South Korea's KOSPI slid 2.5%. S&P 500 futures fell 1.3% in early Asian trade. Wall Street's major indexes already posted their biggest percentage drop of the year on Monday on fears of an escalation in the U.S.-China trade war.

MSCI's All Country World Index, which tracks shares in 47 countries, extended last week's slide and has slumped 2.5% to a two-month low on Monday. China's offshore yuan stretched the previous day's big slide and weakened to 7.1288, a fresh record low since international trading on the Chinese trade began.

The yen, a perceived safe-haven in times of market turmoil and political tensions, rose 0.4% to a seven-month high of 105.520. Investor demand for other safe-havens such government bonds also remained high as risk aversion gathered momentum.

The 10-year U.S. Treasury yield extended sharp falls overnight and declined to 1.685%, its lowest since October 2016.


TRENDING

OPINION / BLOG / INTERVIEW

South Africa's COVID-19 response: Surprising outcomes or just poor data management?

South Africa has been committed to improving its health information system and shows that a robust digital has considerable scope to improve healthcare for the entire population. But the COVID-19 pandemic has highlighted that significant ga...

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Videos

Latest News

Biden discloses tax returns before debate, prods Trump to release his

Hours before his first debate with President Donald Trump, Democratic presidential nominee Joe Biden on Tuesday released his 2019 tax returns and his campaign called on Trump, who has come under fire for not releasing his returns, to do the...

EXPLAINER-The $4 trillion U.S. government relies on individual taxpayers

The U.S. governments over 4 trillion annual budget, the worlds largest, relies heavily on individual wage earners whose taxes and retirement benefits are deducted from every paycheck, leaning particularly on the top 20 of income earners.Cor...

Huawei lawyers wrap up arguments in Canadian court, saying U.S. extradition case is 'ineffective'

Lawyers for Huawei Technologies Chief Financial Officer Meng Wanzhou wrapped up their arguments in a Canada courtroom on Tuesday, calling the United States extradition request ineffective, and sought to add a new charge in their effort to s...

Tennis-More French men crash out in first round at Roland Garros

The lack of spectators did not take the pressure off the French men at their home Grand Slam as none of those playing on Tuesday advanced to the second round at Roland Garros to produce a collective failure only seen once before in the Open...

Give Feedback