Wall St. ends losing streak after China lifts Yuan


by   |  VIEW 319
Wall St. ends losing streak after China lifts Yuan

On Tuesday, the 6th of August 2019, all three key indexes of Wall St. surged more than 1 percent, gaining some of their footings lost yesterday (August 5th) when Wall Street’s major indexes had been rampaged by a wave of whacking blows after China had devalued its currency to an eleven-year-low figure.

Nonetheless, although analysts were cautioning that Tuesday’s (August 6th) gain could be short-lived and a rebound of Chinese Yuan could have been temporary, US Stocks climbed more than 1 percent after China stabilized its offshore currency, offsetting concerns that a catastrophic currency war would be involved at the next stage of Sino-US trade war.

In fact, China’s latest move to straighten out its currency came a day after US President Donald Trump and his Administration had labelled China as a currency manipulator for the first time since 1994. Adding that China’s Tuesday’s (August 6th) show-off of its FX reserve’s strength, which once helped global economy get up off its knees from a 2008-2009 great financial depression with a monetary stimulus worth of $600 billion, displayed how vulnerable US financial markets could become amid a full-blown trade war with China, a chief market strategist at Prudential Financial in Newark, Quincy Krosby said, “It’s a signal from the Chinese side that they want to keep the yuan steady and elevated.

But it also indicates how quickly things can change. That’s permeating the tone in the market, and it’s one of the reasons there remains that sense of trepidation”. Citing statistics, on Tuesday’s (August 6th) market closure, Dow Jones Industrial Average soared 1.21 percent to 26,029.52 and Standard & Poor 500 climbed 1.30 percent, while Nasdaq mounts 1.39 percent to 7,833.27 on Tuesday’s (August) market curtain off.