US stocks open higher as Chinese yuan stabilises

About 20 minutes into trading, the Dow Jones Industrial Average stood at 25,863.41, up 0.6 per cent. — Reuters pic
About 20 minutes into trading, the Dow Jones Industrial Average stood at 25,863.41, up 0.6 per cent. — Reuters pic

NEW YORK, Aug 6 —   stocks opened solidly higher today as took steps to stabilise its currency amid an escalating trade war with the United States.

About 20 minutes into trading, the Dow Jones Industrial Average stood at 25,863.41, up 0.6 per cent.

The broad-based S&P 500 gained 0.7 per cent, rising to 2,865.18, while the tech-rich Nasdaq Composite Index rose 1.1 per cent to 7,809.83.

have fallen the last six days, with especially bruising losses on Friday and yesterday following the latest tit-for-tat measures between Beijing and Washington.



Stocks sold off on Friday after US President Donald Trump announced new tariffs on US$300 billion (RM1.25 trillion) in goods and again yesterday after China let its currency depreciate and signalled it would halt purchases of US agricultural goods.

Today, China’s “seemingly applied a discretionary ‘counter-cyclical adjustment’ to brake the yuan’s slide,” said Carl Weinberg, chief international economist at High Frequency Economics.

“In other words, it could have used its currency management rules to steer the yuan even cheaper, but it did the opposite.”

Weinberg described the ongoing US-China trade war as “debilitating for the global economy because of the uncertainty it causes for businesses and financial markets.” — AFP  

Source: The Malay Mail Online





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