U.S. stocks opened sharply lower Tuesday after a surprise overnight move by China to reduce the value of its currency in an effort to provide a boost to its lagging economy by making its goods more affordable to foreign buyers.
The move was greeted negatively by Wall Street as it suggests the world's second-biggest economy might be in worse shape than believed.
Also read: China Fends Off Trade Trouble With 6.8% Growth
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August 19, 2015 4:48 PM
on again, off again, this nonsense has been going on since last October.
August 19, 2015 4:46 PM
Keep sliding Mr. Stock Market. I appreciate the buying opportunities.
August 19, 2015 4:45 PM
Slip sliding away, slip sliding away... You know the nearer your destination, the more you slip sliding away...
August 19, 2015 4:43 PM
This reader would find it helpful if the WSJ writers would more carefully distinguish between 'investors' and 'traders'. Seems like every market fluctuation is rationalized as 'investors became nervous' over some current event . More clarity on the relative impact between traders and investors on volatility would be enlightening.
August 19, 2015 4:42 PM
It's always something. Is a 25-50bp rise really going to bring the rafters crashing down around us?
August 19, 2015 4:42 PM
A slump in the Chinese economy will motivate Chinese manufacturers to push even harder for a more sales in the US. Chinese wages will come under downward pressure and so will the Yuan, making Chinese products even more attractive to US consumers. The extra sales the Chinese companies will make to the US will largely come from declining sales by US companies.
August 19, 2015 4:41 PM
Folks, the future of transportation folks is electric cars and hybrids. I'd forget about crude oil and do lots of research on battery technologies, electric cars, solar power, wind power, grid energy storage, etc.
August 19, 2015 4:41 PM
And the probability that the U.S. Fed will begin the gradual exercise necessary to normalize interest rates* seems to be becoming a lower and lower probability as the world economic turmoil increases.
August 19, 2015 4:41 PM
Have always said and say it again on China. Their economy was propped up by government stimulus with annual growth of 7% plus. Now that the Chi-Coms are signaling cutbacks, all this stimulus has vaporized and the house of cards they built is about to collapse. Meanwhile, China may be headed towards a recession. We may never know since they've mastered the art of cooking the numbers. Can we trust the Chi-Com government to tell us the truth on anything?
August 19, 2015 4:41 PM
And ours isn't? I guess $4.5 trillion of quantitative easing never happened under OWEbama? Interest rates held artificially low.