“U.S. stock index futures fell sharply for a second day in a row on Wednesday as China pushed the yuan lower again, exacerbating fears about a global economic slowdown,” Tanya Agrawal reports for Reuters.
“The yuan hit a four-year low with spot yuan dropping as low as 6.4510 per dollar, its weakest since August 2011, after the Chinese central bank set its daily midpoint reference at 6.3306, even weaker than Tuesday’s devaluation,” Agrawal reports. “China’s surprising move has led to speculation that the U.S. Federal Reserve will wait until December to raise rates.”
“Automakers with a big exposure to China also fell again. Shares of General Motors Ford Motor and Fiat Chrysler were all down 1 to 4 percent premarket,” Agrawal reports. “Apple fell 1.2 percent to $112.08 and was on course to dip to its lowest in more than six months.”
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MacDailyNews Take: Contagion.
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