China moves again on yuan, EU grants burn 227 billion – ANSA.it

China back to sink the markets, doing burn to Europe 227 billion: the markets fear a hot August fueled by the devaluation of the yuan strong today, raising fears of a sharp slowdown in China’s economic engine and the impact of Use and Europe. For the second consecutive day the bags go down, with the Big exports to Beijing – as the sector of luxury products and the car – to drive losses. Investors run to the safe haven of gold, the American treasury, the bund (rates at record lows), and bet on a delay of the rise in US interest rates. Salt the euro above 1.11, while continuing slide in oil this morning below 43 dollars on fears for global demand. After cutting the 2% of the fluctuation band against the dollar yesterday decided, the strongest seen in a decade of change adjusted daily, the Chinese Central Bank today lowered the reference of another 1.6%. It ‘a move that was expected by many, that the yuan has large potential downside, designed to support the ailing economy. But the tight schedule did not escape the fact that food from bags.

At the slip of the yuan – which closed in Shanghai with a fall of just under 1%, to $ 6.387, after touching a minimum of 6.45 to the dollar – was accompanied by that of many Asian currencies, such as the Vietnamese Dong, kicking off a domino effect started from Hong Kong (-2.1%), Sydney (-1.66%) , Tokyo (-1.58%). The effect is even more amplified in Europe, between recovery still very fragile and high dependence on exports to China. So Frankfurt revealed a dramatic -3.27%, -3.40% Paris, Milan -2.96%, -1.40% London. There are fears for the export, that are scoring in Fca (Fiat Chrysler) a heavy -6.46%. BMW also down (-3.7%) and in France and Peugeot, among the houses of luxury, LVMH, at a loss of more than 4%. Europe, who thought he had filed the roller coaster stock market by securing Greece, now has to deal with a loss of competitiveness by exchange rate and fewer customers from Asia. And shake the US too, with Apple, one of the American companies that export more to China, which, at the opening of New York, sold 3.4% only to recover later in the day. Also hurt financial stocks. The stock indexes in New York give more than 0.70%, while it raises questions about the implications for the Federal Reserve, which could be forced to postpone the ‘liftoff’, the rise in interest rates.