New York stock indexes hammered as China allows yuan to devalue
2033 Comments
Angela Kung Content Disabled Every time this clown opens his mouth the markets go up and down like a roller coaster. And then he turns around and blames it on the federal reserve and tries to intimidate them. Fed up with this.
David R. Amos Content Disabled Reply to @Angela Kung: Welcome to the Circus
John Milkovic Content Disabled This what happens when you allow your 7 year old to start running your household affairs..chaos, angst, hypocrisy, anger, desperation ......except this 7 year old is destroying the world economies
David R. Amos Content Disabled Reply to @John Milkovic: Methinks it not nice to insult the legions of seven year olds who are wiser and far more ethical than the POTUS N'esy Pas?
Rob Douglas
Content Disabled Keep in mind that the mutt who started all this is the same fella that bankrupted a business that prints cash.
David R. Amos Content Disabled Reply to @Rob Douglas: Methinks he still thinks he has made America great again N'esy Pas?
Bill Nest Trump thinks he's dealing with a bunch of rookies.
Mark Baker
Reply to @Bill Nest: trump thinking is an oxymoron...
David R. Amos
Reply to @Mark Baker: Methinks many will agree that that is a true statement N'esy Pas?
David R. Amos Reply to @Bill Nest: Methinks Trump did not make the most liked threads go "Poof" perhaps the Russians did it N'esy Pas?
Brent Grywinski
Trade wars are easy to win, right, Donald? Except the whole world might lose.
Mark Moncton
China fights back hard on US tariff, real retaliation payload will come. US stock plunges 950 points this afternoon. 70 % US Corporations and Americans rely on stock to finance. But China is 15 %. Andrew Collier of Orient Capital Research and most US economists described Trump’s latest tariff move as a “sword at the throat” of the U.S. economy rather than China’s. Trump’s trade war is triggering a deep US recession happen sooner, last much longer, and cause more pain. The U.S. second quarter GDP, the latest report, astonishingly declines by 55 % from 4.2 % to merely 2.1 % % from the same time last year, after its huge 1.5 trillion dollars tax cut that running out of steam so fast ( expensive tax cut not in recession time) , with 120 % national debt per GDP and 1 trillion dollars each year just for the payment of national debt. Many important indicators in US are way down i.e. bond yield curve repeatedly inverts (upcoming recession), manufacturing index, Export Index, growing national debt, interest rate uncertain and repeatedly cut. UBS study on 24,000 franchise stores in US shows that higher tariffs on Chinese goods have forced more than half of them closed ( stores have been largely closed across US in recent months). Trade war only punish consumers. China trade surplus rose in a big scale, and with US increased by 12% over the six months ending in June this year to 954.81 billion despite the impact of tariffs. But US exports to China sharply declined by 31 % this year. US GDP will continue declining under 1 % or below in the third or fourth quarter. https://www.cnbc.com/2019/08/02/analysts-on-the-impact-of-trumps-latest-tariffs-on-china.html
Reply to @mark moncton: Methinks the Chinese and the Russians have been buying gold by the tons for years for very valid reasons N'esy Pas?
Kevin Delaney Have No Fear. A Stable Genius is running this show.
Kevin Delaney
Reply to @James Holden: A guy who rants against individual enterprises driving Value Down. Picks a fight with China and tanks a market. Stable Genius moves.
David R. Amos
Reply to @Kevin Delaney: Methinks there are many not so stable geniuses getting rather nervous N'esy Pas?
Steve Barton Trump is a Tariffist.
David R. Amos Reply to @Steve Barton: Oh So True
Frank Weiler soon Trump will tell the U.S. Federal Reserve Bank to ax further interest index , and the borrowing frenzy continues all the while the National Debt spirals upward , then China will play their trump card as to call AMERICA to pay up their debt in FULL plus interest
Jim Trautman Reply to @Roger devry: Oh, you mean like Boris Johnson to the EU and you seem to think there won't be any consequences try reading a good book on the Depression of 1929 an how that came about. Jim Trautman
David R. Amos
Reply to @Jim Trautman: Methinks history has a bad habit of repeating itself N'esy Pas?
Mike Mineau Trump is ruining everything. Period. What a disgusting leader.
Bernie McCann Reply to @Lily O'Loughlin: -- Very soon, business will discover that everything bought from China is available elsewhere.
David R. Amos
Reply to @Bernie McCann: Methinks that was always well known It is the price of the product that matters to most N'esy Pas?
Jeremy Kemp China will quickly teach Trump a well deserved lesson.
David R. Amos
Reply to @Jeremy Kemp: Methinks they already are N'esy Pas?
Frank Weiler well Donnie what have you got to explain yourself ? please don't use the blame game here, economy growing , while debt continues to mushroom you ain't seen anything when this trade deal with China 'WORSENS" , you have only yourself to blame , the American people have been hoodwinked again....
David R. Amos
Reply to @Frank Weiler: Methinks Donnie and his puppet masters don't care N'esy Pas?
Terry Viceroy The non-stop effort by MSM to take shots at Trump has now led to posters siding with a communist dictator over our best friends next door.
David R. Amos Reply to @Terry Viceroy: Methinks either you and I get our news from much different sources or one of us can't understand what we read N'esy Pas?
Louis Pelt All China has to do is wait the U.S out. At some point the mass shootings will do everyone in.
Jack Hill
Reply to @Louis Pelt:
First part of your statement s correct. Second part is sick.
David R. Amos
Reply to @Jack Hill: I concur
Stanley Baird
Reply to @Louis Pelt: Anyone who bets against the US will lose in the end - it is the greatest democratic and competitive free market in the world - virtually free of corruption which plague other economies outside North America (except Quebec) and some of Europe.
Charles Maturin
Reply to @Jack Hill: Sick? yes. True? yes
New York stock indexes hammered as China allows yuan to devalue
Threat of tariffs has been hitting markets hard for the past 3 days
CBC News·
Traders work on the floor of the New York Stock Exchange. U.S. stocks were diving on Monday on trade tensions with China. (Richard Drew/The Associated Press)
New York stock indexes plunged Monday, as investors continued to deal with the fallout of the China-U.S. trade war.
The Dow Jones Industrial Index was off 880 points or 3.3 per cent in the afternoon, but bounced slightly at the end of the trading day. It ended the day down 770 points or 2.9 per cent to 25,719, while the broader S&P 500 Index fell 91 points or 3.1 per cent to 2,839. The tech-heavy Nasdaq, which is more sensitive to trade with Asia, was off 3.4 per cent or 275 points to 7,729.
Canada's TSX index was not trading because of the August Civic holiday.
The price of oil also declined amid fears of depressed demand because of the trade war. West Texas Intermediate crude fell 85 cents to $54.85 US a barrel.
Just 10 days ago, U.S. stocks were trading at record levels, but the Trump administration's threat to impose more 10 per cent tariffs Sept. 1 on $300 billion of Chinese imports has knocked back markets around the world.
"The Great China Trade Deal evaporated before our eyes last week and investors should stop hoping it back into existence," Christopher Smart, head of the Barings Investments Institute, wrote in a report.
On Monday, China allowed its currency to decline below the politically sensitive level of seven yuan to the U.S. dollar.
Market forces usually would act to drive down the yuan in response to U.S. actions against Chinese goods, but China's central bank previously has been allowing the currency to hold its value so as not to further inflame trade tensions.
Investors are interpreting Monday's fall in the yuan as a new front in the trade war and are worried about a global economic slowdown as a result of the trade war.
The all-important American consumer stands to suffer as a result of tariffs and that could further threaten U.S. growth. The latest round of tariffs on Chinese goods would cost U.S. households an average of $200 a year, some economists estimate, and would start to bite consumers and retailers just as the holiday shopping season begins.
That cost would come on top of the roughly $830 cost imposed per household from Trump's existing tariffs, according to a New York Federal Reserve analysis.
The U.S. economy is still growing and unemployment is low, but a threat of global recession could end its run and drag down profits at U.S. companies.
Technology stocks took the worst hit in the early going as many of those companies stand to suffer more than other sectors if the trade war between the U.S. and China continues to escalate. Apple fell 5.0 per cent and Microsoft fell 4.3 per cent.
Investors fled to less risky holdings. Bond prices spiked and pushed yields on the benchmark 10-year Treasury down to 1.77 per cent from 1.85 per cent on Friday.
