China moved markets up yesterday and moved markets down today. The S&P 500 fell 0.96% and the NASDAQ 1.27% – both indexes finished a bit off their lows. China continues to wave their magic wand to support markets and the economy as the People’s Bank of China depreciated the yuan by nearly 2%.
The drop in the daily peg to 6.2298 renminbi against the U.S. dollar, down from 6.1162 on Monday, was the largest one-day move in more than two decades and took the currency back to levels from three years ago. The central bank described the decision as a “one-off depreciation.” “I think the market’s perception is if China is doing that they’re really worried about their economy,” said Jason Leinwand, managing director at Riverside Risk Advisors. “Any currencies that have direct ties with China will be weakened.”Continue reading