For the fifth day in a row, the stock market dropped. But today’s losses were especially heavy with the DJIA down at one point on Monday more than 950 points. It recovered slightly to close down 760. From CNBC.
“China, which has historically controlled its currency, the yuan, allowed it to fall to its lowest level on Monday against the dollar in more than a decade. The onshore yuan broke above 7 per U.S. dollar and traded around 7.05.
News of the devaluation sent stocks tumbling around the world. But it wasn’t just the currency. CNBC reports: “Along with the currency move, China retaliated by suspending the purchases of U.S. agricultural products and threatened to slap tariffs on the farm goods purchased after Aug. 3, according to state media and other reports.“
China has decided that there will be no trade deal and is in this for the long haul, according to analysts. Trump has announced another round of tariffs to take effect on September 1 on $300 billion worth of Chinese goods.
So now your IRA is taking a hit while the price of a wide-screen TV will take a jump.
The New York Times writes that “[T]he trade war between the United States and China entered a more dangerous phase on Monday and has “begun to inflict damage across the global economy.”
