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Hello and welcome to our continued coverage of the global economy, financial markets, the euro zone and business.
Fears of a trade war are not lacking today. Asian stock markets have fallen to their lowest level since last fall, after Donald Trump refused to yield to international pressure on his prices.
The Shanghai Composite Index fell 1.9% to hit its lowest level in 28 months. bouncing into a late rally.
Abdulla Rawanbakhsh
(@ ARawanbakhsh)The Shanghai Composite Index is on track to clear all the gains since 2016! #China #EmergingMarkets #Sources of Financing # Markets #Investments #US #TradeWar pic.twitter.com/7sEsNG9Wa3
The Chinese yuan also had a bad day, slipping against the dollar at its weakest level in almost a year.
Both the onshore and offshore yuan dropped to
Massive sales suggest that Asian investors have been hit hard by unbeatable rates between China and America.
US duties on $ 34 billion worth of Chinese products are expected to arrive in July 6, with China poised to retaliate with duties of its own on the same value of US goods.
A Trade Could Wrong the Chinese Economy, at a Time When Beijing Attempts to Attack Its Parallel Banking Sector and Continue the Evolution of a Manufacturing-Based Economy to a Directed Economy by the services.
Jamie McGeever
(@ ReutersJamie)The Chinese Yuan slipped to its lowest level in 11 months. Yuan onshore as low as $ 6.7168 / $, offshore yuan 6.7326 / $. The spread between the offshore yuan and the onshore yuan continues to widen – briefly the widest since February – reflecting the increasing selling pressure of international investors. pic.twitter.com/NLnIqfuG8V
Hussein Sayed, Chief Market Strategist at FXTM says the sharp depreciation of the Chinese currency is
It reminds us that a similar collapse three years ago scared the world markets:
As of August 2015, the USD-CNY is valued at 6 , 21 to 6.44, a gain of 2.85% over two days. As a result, global stock markets have fallen sharply as investors fear the onset of a currency war. With trade tensions increasing day by day, Beijing could play this game as a tool in its trade war with the United States. However, such a strategy will be a double-edged sword because it could also lead to a capital flight that the PBoC
Although the Chinese currency depreciated by 3.23% in June, it did not seemed so alarming, since the dollar appreciated against most major currencies in May and June. In the future, it will be the pace and magnitude of currency movements that will stimulate stock markets. The CNYUSD was trading at 6.70 at the time of writing and would keep a close eye on 6.96, the lowest level reached in January 2017.
The White House continues its plans to penalize trading partners unless they give a better American deal.
Yesterday, President Trump insisted that the World Trade Organization must reform after having "abused a lot for many years."
A new health check of British builders is published this morning. The construction PMI is expected to experience another month of slow growth, as Carillion's collapse in January continues to impact the sector
European stock markets are expected to rise after the deal is over. Angela Merkel with Interior Minister Horst Seehofer should prevent his coalition from collapsing
We also receive new data on retail sales in the euro area and on US manufacturing orders, which will show whether trade war fears have an impact
- . Construction PMI for June
- 10am BST: Eurozone Retail Sales for June
- 15h BST: United Kingdom Factory Orders for May
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