(As of 7:20 am PST)
US
stocks are pulling back from yesterday’s rally which snapped a seven-day losing
streak for US equities. Today’s move happens on the heels of a surprise
devaluation of the Chinese Yuan early Tuesday. China’s central bank devalued the
highly controlled Yuan by nearly 1.9% Tuesday, for its largest one day loss in
nearly 20 years, sending the dollar
soaring from 6.21 yuan to 6.325 yuan. Fears of an all-out currency war are
rippling through global markets today, as analysts began speculating about what
China’s move means for the Fed’s own policies. Many are now calling for the Fed
to push their looming rate hike out to 2016, as the strengthening dollar
continues to take a toll on US exports and thus GDP growth. Economic data today
was mostly positive although not strong enough to pull markets back from the
selling pressure. Asian markets finished in the red while European indexes are
also headed toward a negative close. Oil is down 3.5% today pressuring energy
stocks, while gold is up slightly. Interest rates are down as investors sought
the safe-haven of the US treasury.
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