{"id":10925,"date":"2015-08-12T07:33:54","date_gmt":"2015-08-12T12:33:54","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10925"},"modified":"2015-08-12T07:33:54","modified_gmt":"2015-08-12T12:33:54","slug":"global-markets-turmoil-after-china-extends-currency-war-to-2nd-day-devalues-yuan-to-4-year-lows","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10925","title":{"rendered":"Global Markets Turmoil After China Extends Currency War To 2nd Day &#8211; Devalues Yuan To 4 Year Lows"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-08-11\/yuan-collapses-stocks-slide-credit-risk-hits-2-year-high-after-china-devalues-curren\" target=\"_blank\">Global Markets Turmoil After China Extends Currency War To 2nd Day &#8211; Devalues Yuan To 4 Year Lows<\/a><\/h3>\n<p><strong>Chinese stocks opened lower,\u00a0<\/strong>extending yesterday&#8217;s losses, after The PBOC\u00a0<strong>weakened its Yuan FIX dramatically for the 2nd consecutive day<\/strong>(from 6.1162 Monday to 6.2298 last night to 6.3306). Offshore Yuan fell another 9 handles against the USD after China closed but was hovering at 6.40 as the market opens (<strong>now at 11 hnadles weaker at 6.51<\/strong>). Bear in mind the<a href=\"http:\/\/www.zerohedge.com\/news\/2015-08-11\/demand-credit-plunges-55-china-slump-deepens\">\u00a0utter devastation in Chinese credit markets that data showed occurred in July<\/a>, it remains ironic that for the 3rd days in a row,\u00a0<strong>Chinese margin debt balances grew<\/strong>. Before the real fun and games started, Chinese officials once again<strong>\u00a0exclaimed that their data is real<\/strong>\u00a0(denying any mismatches between GDP Deflator and CPI) as\u00a0<strong>China CDS spiked to 2 year highs<\/strong>. US equity futures are tumbling, bonds bid, and gold bouncing off the initial jerk lower.<\/p>\n<p>PBOC makes some comments (like last night&#8217;s)&#8230;<\/p>\n<ul>\n<li><strong>*PBOC SAYS NO ECONOMIC BASIS FOR YUAN&#8217;S CONSTANT DEVALUATION<\/strong><\/li>\n<li><strong>*PBOC SAYS YUAN WON&#8217;T CONTINUOUSLY DEVALUE<\/strong><\/li>\n<li><strong>*PBOC SAYS MOVE OF YUAN REFERENCE PRICE IS NORMAL<\/strong><\/li>\n<li><strong>*CHINA YUAN MECHANISM CHANGE MAKES FIXING RATES MORE REASONABLE<\/strong><\/li>\n<\/ul>\n<p>And then there is this (from Xinhua):<\/p>\n<blockquote>\n<div class=\"quote_start\"><strong>China&#8217;s state-owned news 4-year lowsagency Xinhua said: &#8220;China is not waging a currency war; merely fixing a discrepancy.&#8221;<\/strong><\/div>\n<p>&#8220;The central parity rate revision was designed to make the yuan more market-driven and in line with market expectations,&#8221; it said in a comment piece published on its web site.<\/p>\n<p><strong>&#8220;The lower exchange rate was just a byproduct, not the goal.&#8221;<\/strong><\/p><\/blockquote>\n<p>The &#8220;one-off&#8221; adjustment has now become two&#8230; some context for the size of this move&#8230;<\/p>\n<ul>\n<li><strong>*MNI: CHINA PBOC WED YUAN FIXING LOWEST SINCE OCT 11, 2012<\/strong><\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2015\/08\/20150811_china_open10.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2015\/08\/20150811_china_open10_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>Onshore Yuan breaks above 6.41 &#8211; trades to 4 years lows against the USD&#8230;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets Turmoil After China Extends Currency War To 2nd Day &#8211; Devalues Yuan To 4 Year Lows Chinese stocks opened lower,\u00a0extending yesterday&#8217;s losses, after The PBOC\u00a0weakened its Yuan FIX dramatically for the 2nd consecutive day(from 6.1162 Monday to 6.2298 last night to 6.3306). Offshore Yuan fell another 9 handles against the USD after China [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6036,1626,130,2026,172,1450,7576,376,534,7127,675,8020,2773,1031],"class_list":["post-10925","post","type-post","status-publish","format-standard","hentry","category-economics","tag-b","tag-cds","tag-china","tag-consumer-prices","tag-cpi","tag-equity-markets","tag-etc","tag-goldman-sachs","tag-monetary-policy","tag-ransquawk","tag-renminbi","tag-risk-premium","tag-volatility","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10925"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10925\/revisions"}],"predecessor-version":[{"id":10926,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10925\/revisions\/10926"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}