Trump administration designates China a currency manipulator
Wall Street looks to bounce back as US-China trade war escalates dramatically
The Treasury Department on Monday officially declared China a currency manipulator, after the yuan fell to a more than 10-year low against the U.S. dollar. Secretary Steven Mnuchin, with the support of President Trump, determined that China is in fact unfairly influencing its currency – allegations that had been made by the president multiple times throughout the day. The yuan’s movement on Monday combined with the administration’s announcement that it plans to impose 10 percent tariffs on the remaining $300 billion worth of Chinese goods coming into the U.S. next month, sent markets spiraling, leading to their worst day of 2019. U.S. stocks went into freefall on Monday, with the Dow Jones Industrial Average down 900 points at its low before curbing some of those losses, ending the session 767 points lower.
The Treasury Department on Monday officially declared China a currency manipulator, after the yuan fell to a more than 10-year low against the U.S. dollar. Secretary Steven Mnuchin, with the support of President Trump, determined that China is in fact unfairly influencing its currency – allegations that had been made by the president multiple times throughout the day. The yuan’s movement on Monday combined with the administration’s announcement that it plans to impose 10 percent tariffs on the remaining $300 billion worth of Chinese goods coming into the U.S. next month, sent markets spiraling, leading to their worst day of 2019. U.S. stocks went into freefall on Monday, with the Dow Jones Industrial Average down 900 points at its low before curbing some of those losses, ending the session 767 points lower.
Wall Street will look to recover Tuesday but a rocky road may lie ahead. The yuan showed signs of stabilizing early Tuesday as futures pointed to a modestly lower open for American equities, with E-Mini S&P 500 futures down 0.3 percent.
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