Global Markets: China devalues yuan, U.S. markets hit hard

By MarketsFarm

WINNIPEG, Aug. 6 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Stock markets in the United States took a beating on Monday, as China used its yuan to stoke its trade war with the U.S. In the markets’ biggest losses of 2019 so far, the NASDAQ suffered the largest blow as it lost almost 3.5 per cent of its value. The Dow Jones and the S&P 500 saw nearly 3.0 per cent of their values evapourate. On Monday, China devalued the yuan as a means to undermine the U.S. dollar in response to President Donald Trump’s threat to hike tariffs on Chinese imports by another 10 per cent on September 1. The U.S. markets were beginning to recover Tuesday morning. Also, the U.S. accused China of devaluing the yuan by too much and indicated it would pursue the matter with the International Monetary Fund.

– Meanwhile, there could be co-operation between the U.S and China in the Persian Gulf. China has considered sending naval vessels to escort Chinese-flagged oil tankers through the precarious Strait of Hormuz. In recent weeks, the Iranian Revolutionary Guard has harassed and seized a number of vessels transiting the narrow strait. The U.S. proposed the formation of a maritime coalition to protect vessels in the region. There has been no official word of the U.S. formally inviting China, which has close ties to Iran, to join the coalition.

– Consular officials from Canada have met with Michael Korvig for a 10th time, according to Global Affairs Canada, which couldn’t comment on the detained Canadian citizen’s well-being due to privacy issues. Since December, Korvig and Michael Spavor have detained by China, which has been seen as retaliation for the arrest of Huawei executive Meng Wanzhou in Vancouver that month. Canadian Foreign Affairs Minister Chrystia Freeland met with her Chinese counterpart on August 2 to discuss the detained Canadians. Freeland said further diplomatic meetings pertaining to Korvig and Spavor will be behind closed doors.

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