China, record devaluation of the yuan. Bags in red, there is a spectrum of war of currencies – Quotidiano.net

Beijing, August 11, 2015 – Bags in trouble since the collapse of the yuan. Wall Street also feeling the pinch. . L surprise move the Central Bank of China that has devalued the local currency compared to dollar disorients European stock markets put further out of sorts from the drop exceeded expectations of German investor confidence .

The concerns about the the economy of Beijing, who recently had published statistics on exports and imports down sharply, worried investors with effects that have also affected the prices of raw materials. The devaluation of the yuan could open disturbing scenarios internationally. You start talking about currency war as plausible risk. Washington brakes, but do not let your guard down: “It ‘s too early to assess the implications of the devaluation of the Chinese currency.”

THE SCALES – At the end of session Frankfurt was the worst with a contraction DAX30 index of 2.75% mainly due to the crash of the auto industry is very exposed to Asian markets (-5% Daimler, BMW -4%). Milan has limited the damage to a -1.12% of FTSE Mib closed on dips.

Obvious decrease of luxury in China has great potential in the area growth: -5.5% Ferragamo, -3.2% Moncler and Tod’s. Declining even the titles of society ‘more’ exposed to the dollar accomplice weakening of the dollar against the single European currency, the euro / dollar 1.1062 marks (1,098 yesterday) in the fear that the devaluation of the yuan away the Fed rate hike. Down the oil: WTI down 4% to $ 43.16 per barrel, the Brent -3% to $ 48.86 per barrel.

THE DEPRECIATION – The Central Bank of Beijing , through the increased operation of the last twenty years, led the listing of the currency against the dollar 6.2298 (-1.9%) by specifying that it is a measure ‘one-off’ . The Central Bank has therefore cut its rate (which allows the market a daily fluctuation of about 2%) after the peg to the dollar has hit hard in recent months exports of the Asian country. Bloomberg says that The devaluation of today, the most significant unification of the country in 1994, should let the market determine the change greater willingness to consider some parameters, such as d order now and the offer and the closing rate of the previous day . If the devaluation will curb capital flight and revive exports, but the move will hit the purchasing power of Chinese consumers on some products. The decision of the authorities in Beijing comes in conjunction with the Depreciation in the region the currencies of Australia, South Korea, and Singapore . The result? The specter of a ‘currency war’, which could focus on the devaluation of achieving a competitive economy.

June ‘EVEN WALL STREET – Wall Street closed down after the move surprise Chinese central bank , who has decided to devalue the yuan by nearly 2% against the dollar to boost exports. The Dow Jones ended the trading day falling 1.2% to 17,402.98. Downhill even the Nasdaq -1.27% to 5,036.79.