China Devalues Yuan

Stocks fell worldwide Monday on Chinese currency devaluation and trade war escalation. Stocks fell 2.4% in Asia, 2.3% in Europe, and 2.7% in the U.S. on high volume. The VXO shot up 38% to close at 25.81. The 10-Year U.S. Treasury bond rate plummeted another 6% to close at 1.74. Precious metals gained 1% while their miners rose three times that amount. The major indices Dow, NASDAQ, and S&P all closed below benchmarks: 26,000, 8000, and 2900 respectively. Apple closed well below its 200 benchmark.

Tuesday, stocks fell 0.7% in Asia and 0.6% in Europe, but gained 1.1% in the U.S. on strong volume. The Dow managed to close above 26,000 as China stabilized its currency. Wednesday, stocks gained 0.3% in Europe but in Asia and the U.S. they closed little changed on high volume. The 10-Year U.S. Treasury bond rate fell 3% to close at 1.68. Precious metals and their miners rose 2%.

Thursday, stocks gained 0.6% in Asia, 1.7% in Europe, and 1.6% in the U.S. on strong volume. The VXO fell 16% to close at 18.13. The 10-Year U.S. Treasury bond rate rose 2% to close at 1.72. The Dow, NASDAQ, and the S&P moved up to close above theire 2 6,000, 8000, and 2900 levels respectively.

Friday, stocks closed unchanged in Asia, fell 0.8% in Europe, and fell 0.6% in the U.S. on light volume. The VXO rose 8% to close at 19.64. The NASDAQ again closed below 8000 while IBM dropped to close below the 140 benchmark again.

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