📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

GLOBAL MARKETS-Global stocks deepen losses as U.S. brands China currency manipulator

Published 2019-08-05, 08:10 p/m
© Reuters.  GLOBAL MARKETS-Global stocks deepen losses as U.S. brands China currency manipulator
USD/JPY
-
AXJO
-
JP225
-
USD/CNY
-
ESZ24
-
US10YT=X
-
KS11
-
MIAPJ0000PUS
-
MIWD00000PUS
-

* Washington determines China a currency manipulator

* U.S. stock futures down after Wall St's big overnight losses

* Yuan weakens further in offshore trade to new record low

* U.S. Treasury 10-year yield drops to lowest since Oct 2016

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Shinichi Saoshiro

TOKYO, Aug 6 (Reuters) - Global stocks extended their already substantial losses and the offshore yuan hit an all-time low on Tuesday after Washington designated Beijing a currency manipulator in a rapid escalation of the U.S.-China trade war.

U.S. Treasury Secretary Steven Mnuchin said on Monday the government had determined that China is manipulating its currency, and that Washington would engage with the International Monetary Fund to eliminate unfair competition from Beijing. Trump administration's dramatic move against China hastened the risk aversion seen in global markets this week. On Monday, China let the yuan slide in response to the latest U.S. tariff, which is expected to further aggravate trade tensions between the world's two largest economies. broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.75% to its lowest since January.

Japan's Nikkei .N225 shed 2.8%, Australian stocks .AXJO fell 1.8% and South Korea's KOSPI .KS11 slid 2.5%.

S&P 500 futures ESc1 fell 1.3% in early Asian trade. Wall Street's major indexes already posted their biggest percentage drop of the year on Monday on fears of escalation in the U.S.-China trade war. .N

MSCI's All Country World Index .MIWD00000PUS , which tracks shares in 47 countries, extended last week's slide and has slumped 2.5% to a two-month low on Monday.

China's offshore yuan stretched the previous day's big slide and weakened to 7.1288 CNH=D4 , a fresh record low since international trading on the Chinese trade began.

The yen, a perceived safe-haven in times of market turmoil and political tensions, rose 0.4% to a seven-month high of 105.520 JPY= .

Investor demand for other safe-havens such government bonds also remained high as risk aversion gathered momentum.

The 10-year U.S. Treasury yield US10YT=RR extended sharp falls overnight and declined to 1.685%, its lowest since October 2016.

(Editing by Sam Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.