Chinese Yuan Currency Exchange

From Reuters:

China’s 2.0 percent devaluation of the yuan on Tuesday pushed the U.S. dollar higher and hit equity markets worldwide as it raised the prospect of a new round of currency wars and fed worries about slowing Chinese economic growth.

Stocks fell in Asia, Europe and the Americas, as investors worried about the implications of a move designed to support China’s slowing economy and exports. The MSCI All World Index .MIWD00000PUS of global shares fell 0.7 percent.

“What is good for growth in China is unfortunately bad for everybody else,” said Bill McQuaker, co-head of multi-asset at Henderson Global Investors.

The Dow Jones industrial average .DJI fell 137.33 points, or 0.78 percent, to 17,477.84, the S&P 500 .SPX lost 11.74 points, or 0.56 percent, to 2,092.44 and the Nasdaq Composite .IXIC dropped 20.10 points, or 0.39 percent, to 5,081.70.

The devaluation especially hit the stock prices companies exposed to China, with shares of U.S. heavy equipment maker Caterpillar (CAT.N) losing 2.3 percent and Germany’s Volkswagen (VOWG.DE) dropping 4.6 percent.

European shares fell. The pan-European FTSEurofirst 300 index .FTEU3 was down 1 percent, led lower by car makers and luxury goods companies, whose products have just got more expensive for Chinese consumers.

Against the trend, shares in Athens .ATG, however, gained 1.5 percent after the country secured a third bailout deal with creditors, making it the only European bourse to rise.

On Chinese stock markets, airlines and importers fell, though exporters rose. The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen…

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