US
indices recorded significant losses during the session on Tuesday after the
People's Bank of China surprisingly devalued the yuan to a record high.
Chinese
currency fell to lowest level for the past three years, as central bankers in Beijing
were forced to take the devaluation of its currency after surprisingly weak
data on exports.
The
weakness of the yuan will boost exports, which would have a positive impact on
the Chinese economy, but there are questions about the future increase in US
interest rates as the Fed plans to raise interest rates in September, based on
stable economic growth.
Dow
Jones Industrial Average collapsed by 212 points and there is no hint of the strong
performance earlier in the week. The index depreciated by 1.2 percent to a
level of 17,431 points. Most losing in the index were the shares of Apple inc,
which fell by over 5% because of the depreciation of the yuan.
The price indicator continues to move in a downward trend, it is located below
the two moving averages, which is considered a sell signal.
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