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| Stocks Slide After China Lets Currency Dip, Raising Tensions With U.S. | |
| (32 minutes later) | |
| Global stocks dropped sharply on Monday after China let its tightly controlled currency sink to an 11-year low against the dollar, stoking investors’ concerns that Beijing may be using the renminbi as a weapon in the escalating trade war between the world’s two largest economies. | Global stocks dropped sharply on Monday after China let its tightly controlled currency sink to an 11-year low against the dollar, stoking investors’ concerns that Beijing may be using the renminbi as a weapon in the escalating trade war between the world’s two largest economies. |
| On Wall Street, shares tumbled more than 1.5 percent at the start of trading, after benchmark indexes in Asia and Europe fell 1 to 2 percent. | On Wall Street, shares tumbled more than 1.5 percent at the start of trading, after benchmark indexes in Asia and Europe fell 1 to 2 percent. |
| The worldwide stock sell-off came after China’s central bank let the renminbi fall past the psychologically significant point of 7 to the American dollar for the first time since 2008. The move appeared to signal that Beijing was digging in for a long fight with the United States on the issue of trade just days after President Trump threatened a new round of tariffs on Chinese goods amid the two countries’ continuing dispute. | The worldwide stock sell-off came after China’s central bank let the renminbi fall past the psychologically significant point of 7 to the American dollar for the first time since 2008. The move appeared to signal that Beijing was digging in for a long fight with the United States on the issue of trade just days after President Trump threatened a new round of tariffs on Chinese goods amid the two countries’ continuing dispute. |
| The People’s Bank of China, in a bluntly worded statement on Monday, tied the currency fall to Mr. Trump’s “unilateralism and trade protectionism measures and the imposition of increased tariffs on China.” On Monday morning, the renminbi was trading in mainland China at roughly 7.02 to the dollar, compared with about 6.88 late on Friday. | The People’s Bank of China, in a bluntly worded statement on Monday, tied the currency fall to Mr. Trump’s “unilateralism and trade protectionism measures and the imposition of increased tariffs on China.” On Monday morning, the renminbi was trading in mainland China at roughly 7.02 to the dollar, compared with about 6.88 late on Friday. |
| [Read more about China’s suggestion that it may use the currency as a weapon.] | |
| Mr. Trump fired back in a message on Twitter on Monday, saying, “China dropped the price of their currency to an almost a historic low. It’s called ‘currency manipulation.’ Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!” | Mr. Trump fired back in a message on Twitter on Monday, saying, “China dropped the price of their currency to an almost a historic low. It’s called ‘currency manipulation.’ Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!” |
| Stocks on Wall Street have been withering since last week, after a sudden announcement by Mr. Trump that he would add tariffs on another $300 billion of Chinese-made goods revived investors’ worries that the trade war would dampen global growth, and ultimately, the profits of American companies. | Stocks on Wall Street have been withering since last week, after a sudden announcement by Mr. Trump that he would add tariffs on another $300 billion of Chinese-made goods revived investors’ worries that the trade war would dampen global growth, and ultimately, the profits of American companies. |
| The heightened tensions have also rattled investors around the world. Tokyo’s Nikkei 225 dropped 1.74 percent, Hong Kong’s Hang Seng fell 2.9 percent, the Kospi index in Seoul slid 2.6 percent and the Shanghai Composite Index dipped 1.6 percent. | The heightened tensions have also rattled investors around the world. Tokyo’s Nikkei 225 dropped 1.74 percent, Hong Kong’s Hang Seng fell 2.9 percent, the Kospi index in Seoul slid 2.6 percent and the Shanghai Composite Index dipped 1.6 percent. |
| In afternoon trading in Europe, the FTSE 100 index was down about 2.1 percent, the Dax in Frankfurt had lost about 1.6 percent and the CAC 40 in France had declined 1.9 percent. | In afternoon trading in Europe, the FTSE 100 index was down about 2.1 percent, the Dax in Frankfurt had lost about 1.6 percent and the CAC 40 in France had declined 1.9 percent. |