MEXICO CITY (CNNExpansión) – Wall Street, the Mexican Bolsa, weight and international oil prices were steep declines on Tuesday after China decided to devalue the yuan to support its growth, increasing concerns about the health of the world’s second largest economy.
China’s central bank surprised markets with a devaluation of almost 2%, triggering reactions that some analysts described as the preamble to a currency war, and bringing its currency into its worst fall since 1994.
“They took a very significant, completely unexpected, of course decision,” said Jason Leinwand, dirctor manager at Riverside Risk Advisors in New York. “The fear in the market is that the PBOC has done because he fears that growth will weaken too.”
The impact of the measure will be felt worldwide.
Price Index (IPC), which groups the 35 most important stations on the Mexican Stock Exchange, dropped 2.08% to 44379.79 points, its worst fall since 30 January.
US stocks also closed with heavy losses since the devaluation of the yuan surprise hit various sectors, mainly commodities.
According to preliminary closing data, the Dow Jones industrial average lost 212.19 points, or 1.20%, to close at 17,402.98 points, while the S & P 500 fell 20.09 points, or 0.95%, to 2084.09 units.
The Nasdaq Composite lost 65.01 points, or 1.27%, to 5,036.790 units.
US crude fell to a minimum of more than six years also affected by a new estimate of OPEC, which showed that the integrated producers not kept pumping high despite low prices.
The price of US benchmark ended down more than 4%, or $ 1.88, to $ 43.08 a barrel lower, more closing level since March 2009.
Brent fell $ 1.23, or 2.4%, to $ 49.18 a barrel, erasing more than half of the progress achieved in the previous session.
Exchange
The peso closed with losses, against a global strengthening of the dollar after the decision of China and the collapse in international prices oil.
The currency ended down 1.15% to 16.3195 units interbank dollar, despite the Bank of Mexico (Banxico) sold $ 373 million in three distinct to prop up the currency auctions.
In bank counters, the dollar is at 16.62 pesos to 16.02 pesos sale and purchase.
Analysts do not rule out new episodes of pressure on the Mexican peso this week with the release of economic indicators in the United States that could raise expectations for rate hikes from the Fed.
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