NYSE trader on fluctuating markets: 'Uncertainty is what we have'

China exports rise despite ongoing trade row with US

A weaker yuan can help neutralize USA tariffs on Chinese goods by making them more price competitive on worldwide markets.

He also said the United States will not do business with Chinese tech titan Huawei, despite earlier pledges to allow American firms to file for waivers from national security restrictions on the company's operations. This news will bring a smile on the faces of investors in the U.S. market but still nothing is stable so far.

A weaker yuan makes Chinese exports more competitive, or cheaper to buy with foreign currencies.

U.S. and Chinese negotiators met in Shanghai in late July for the first time since talks collapsed in May, and were due to hold another round in September.

His comments sent USA stocks sharply lower, losing as much as 250 points, undercutting a recent recovery from the continued concerns the trade war will cause a slowdown in the global economy.

With the four-year anniversary of China's shock devaluation approaching on August 11, currency traders are adjusting to a new reality without the line in the sand that has helped cushion declines since 2015.

The figures come the US President Donald Trump last week announced his decision to impose duties on $300 billion worth of Chinese products on September 1, after long-running trade negotiations between the two countries broke down. A wider yield gap could mean less capital outflow pressure from China and is supportive for the Chinese currency. The Reserve Bank of India and the Bank of Thailand also cut rates.

In point of fact, after experiencing a havoc-scale volatility in the currency market amid a flurry of uncertainties, currency markets calmed down and volatility gauge seemed to be weakening after China set midpoint rate for its currency at 7.0039, however, the midpoint price for offshore Yuan had still been in its weakest level in more than a decade.

The central bank has assured companies it will not permit sharp declines to continue and the exchange rate will be kept stable.

"I think there may still be some lingering concern over how much this easing will really support the global economy, or just maybe the idea of monetary policy impotence is in investors minds here", Nelson said.



Latest news

Cathay Pacific Suspends Pilot Arrested In Hong Kong Protests
Beijing has condemned some protesters as violent radicals spurred on by foreign forces bent on containing China's development. On Saturday, police fired volleys of teargas to disperse protesters after activists rallied across the city.

United Kingdom opposition warns Johnson against Brexit 'abuse of power'
Sources close to Mr Johnson are reported to have indicated that polling could take place just days after the October 31 deadline. Officials said Sir Mark would be reply to Mr Corbyn, but senior Conservatives dismissed the letter as a "political stunt".

Rio: Keeping Rice was West Ham's best business
Rodri could also start his first league game for City following an impressive performance last weekend in the Community Shield . This will be the Irons' second season under Manuel Pellegrini , who will be looking to build on last seasons 10th place finish.

Syria: US-Turkish Deal ‘Blatant Attack’ on Syria
American troops are stationed in northeast Syria, along with the Kurdish forces, and have fought the Islamic State group together. Syrian government forces have maintained an intense air campaign that has enabled their troops to advance in recent days.

Other news