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From: Ahmed Shawky
Mubasher: China's reaction to Trump's decisions led to the end of trading on Monday by strong and volatile stock markets, which dominated world events.
In response to Washington's intention to impose tariffs on other Chinese imports, China has asked its partners to suspend imports of agricultural products from the United States.
The People's Bank of China (PBOC) set the average trading range of the local currency at 6.9225 yuan to the dollar, which allowed the dollar to break the 7 yuan mark, thus moving the Chinese currency to its highest level. low level in 10 years.
US President Donald Trump commented on the fall of the yuan in these terms: "China is committing a serious violation", while the Chinese central bank has denied the use of currency in the trade dispute.
China's reaction has caused a major shock to global markets. US stocks fell sharply and the Dow Jones lost more than 760 points at the end of the session, the biggest loss this year, led by Apple.
This occurs despite the expectation of an badyst that the devaluation of the yuan would support US stocks.
European stock indexes also fell more than 2% at the close, because of fears of a trade war.
Chinese equities also fell about 2% as the yuan reached its lowest level in a decade against the dollar.
The Nikkei fell by 1.7% at the end of the session to reach its lowest level in two months.
In the bond market, the difference between US long-term debt yields and their short-term equivalents dropped to a 12-year low, as UK government yields fell to a record low .
Gold gains and oil losses
The attractiveness of the yellow metal as a safe haven has increased along with escalating trade tensions. The price of gold rose by about 19 USD, with dollar and US equity losses having reached their highest level in six years.
Due to trade tensions, copper has fallen to its lowest level in two years during the current trading.
In response to the demand generated by the trade war, oil prices fell by about 1.7 percent at settlement and Brent fell below $ 60.
Bank of America is also expecting a drop in oil prices of about $ 30 if China decides to buy Iranian crude.
Low service activity
US service activity hit its lowest level in three years last month as production and new orders fell.
China's services sector also fell in July to its lowest level in five months.
In contrast, the UK services business grew more than badysts' expectations, reaching its highest level in nine months.
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