Overseas Trading: Global Markets Stumble on China's Currency Surprise

The People's Bank of China devalued the country's currency, sending the yuan tumbling

Karee Venema

Aug 11, 2015 at 8:17 AM

Asian markets finished in the red today, after the People's Bank of China made a surprise move. Specifically, the central bank devalued the country's currency following dismal export data released over the weekend. The action sent the yuan tumbling to its heftiest single-session drop since early 1994 -- and the Shanghai Composite fractionally lower. Elsewhere in the region, South Korea's Kospi shed 0.8% despite a weakening won, Japan's Nikkei gave back 0.4%, and Hong Kong's Hang Seng closed down 0.09%.

China's shocking policy decision has European benchmarks sharply lower at midday, led by a sell-off in exporters. Traders are also digesting news that Greece has officially reached a bailout agreement with its creditors that will potentially unlock a third tranche of aid. The Greek parliament must now vote on a reform package ahead of Friday's meeting of eurozone leaders. Against this backdrop, the German DAX is off 1.7%, the French CAC 40 has tumbled 1.1%, and London's FTSE 100 is 0.7% lower.

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