The effects of China’s network of markets – The Economist

After the devaluation of the yuan de1.62, spread falls in global financial sectors.

The markets of the globe suffer their second day black after the Chinese People’s Bank announced a further devaluation of the yuan, after yesterday and left driven negative consequences on the stock and commodities.

In particular, the People’s Bank of China dropped another 1.62% the reference exchange rate of the yuan against the dollar, leading to fears of an escalating currency war.

The central bank justified its decision in a statement by the low price of the currency on the eve.

With this devaluation of the Chinese currency has fallen to four-year lows.

According to Cristián Musalem, market analyst ForexChile, devaluation yesterday “negatively impacted the European export sector, and to a lesser extent the US.

During the day today, we see that the same factor continues to generate downward pressure on the major world markets. “

According Get Expansion, pressure exerted by China could lead the Federal Reserve of the United States to delay its expected rise in interest rates.

That is why Wall Street continue the losing streak began yesterday and this time its main indicator, the Dow Jones lost 1.07%, followed by reversals Nasdaq falling 0.99% percent.

The S & P, meanwhile, records a negative variation of 0.74% percent

Earlier, the largest stock exchange in Asia, the Tokyo fell 1.58% percent. .

Losses in Europe almost reach 3 percent.

As you would expect equities old continent is not immune to the negative trend affecting other markets.

So far, this correction reduces the scope of the German DAX which remains slightly above 11,000 points and recorded a loss of 2.52 percent.

The Paris CAC, meanwhile, recorded a decline of 2.73% and the London FTSE fell 1.21 percent.

In Milan, the FTSE yields 2.32% and IBEX records a negative variation of 1.99 percent.

Funds @ eleconomista.com.mx