Asian stock markets have been hit by turmoil in China as trade war anxiety has intensified

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There has been extensive speculation that the central bank is intervening in currency markets to protect against losses and to prevent a potentially volatile sell-off in the renminbi, while stocks surged in early trading.

On July 6, in China’s financial markets have been nervous before the deadline, when the United States’ preparation for tariffs on $34 billion worth of Chinese goods, Beijing has vowed to match the tariffs on American goods.

A few weeks later, trade disputes between the United States and major economies that financial markets are in trouble, US President Donald trump is his “America first” protectionist policies, many people worry that the policy would harm the global economy.

The European index futures index, the CAC of France and the ftse of the UK, rose 0.3 per cent, while Germany’s DAX index rose 0.5 per cent.

The MSCI index of asia-pacific ex-japan shares fell 1.4 per cent to its lowest level since September 29 before easing some of its losses to 0.5 per cent. Japan’s nikkei index also recovered from a 0.9 per cent drop, ending down 0.1 per cent To near a three-month closing low.

China’s stock market was hardest hit, with Hong Kong’s hang seng falling 3.3 per cent to its lowest level in 10 months, while Shanghai’s fell 1.9 per cent to a 28-month low. The Hong Kong market holding volatile, falling 1.9 per cent, while The Shanghai stock exchange gained 0.5 per cent.

Sumitomo Mitsui Trust Bank, Sumitomo Mitsui Trust Bank), market strategist at Ayako Sera said, “it is not clear whether the trade line can destroy the entire global economy, but at least it has obviously will damage the Chinese enterprise.”

“That’s why we’re seeing a sell-off in the Chinese yuan and Chinese stocks. I think it will last at least until the July 6 deadline. ”

The yuan has been in a downward spiral since mid-june, the first time since Tuesday morning breaks through $6.7 per dollar, this is since August 9, 2017 for the first time, after due to the intervention of the people’s bank of China to reduce Losses.

The big state-owned Banks are seen as exchanging yuan for dollars in the forward market and selling some of them into the spot market, helping to support the yuan, four traders told Reuters. Large state-owned Banks sometimes act on behalf of the central Bank in the forex interbank market, traders and economists said.

The central bank set the midpoint roughly in line with market expectations, at 6.6497 yuan per dollar, the lowest level in nearly 10 months and setting the stage for the day’s decline.

The yuan was last traded at 6.6960 per dollar.

“I am increasing vigilant, trade tensions and nervous about a full-blown trade war, it is a period of recession for China, China’s economy is in a state of decline, at the same time, the United States appears to rise sharply,” Aninda visit to Shanghai last week of New York Mellon Investment Management (for Investment Management) in Singapore, a senior sovereign analysts Mitra (Mitra) said in an email to the media.

Trump on Monday told the world trade organization, “if the United States has not been properly handled, we would do something”, in the European Union said the U.S. automotive tariffs will hurt their own industries and quickly retribution after a few hours.

Also on Monday, Washington blocked China mobile from providing services to the U.S. telecom market and suggested rejecting its application because government-owned companies pose a national security risk.

Chinese officials, the center of an international trade dispute, have warned the United States that tit-for-tat tariffs on each other’s goods will ultimately hurt U.S. businesses and jobs. [L4N1TN1RH]

On the other side of the money market, under pressure to Germany’s political uncertainty of the euro in German chancellor Angela Merkel (Angela Merkel) conservative on immigration after a series of problems, the interior minister Horst west hofer, Horst Seehofer) overthrew the ruling coalition Of her to give up smoking the threats, the loss is reduced.

After falling 0.45 percent overnight, the euro ended trading at $1.1650.

The dollar traded at 110.97 to the yen, giving up gains after a sharp fall in Chinese stocks.

As widely expected, the reserve bank of Australia (RBA) monthly policy meeting on Tuesday will keep interest rates at a record low of 1.5%, and quickly without showing signs of hiking.

“One of the uncertainties in the global outlook stems from the direction of us international trade policy,” said Philip Lowe, a governor of the Australian federal reserve bank, who warned that recent us and Chinese trade tensions possible pose risks.

China is Australia’s main export market and its currency, the Australian dollar, is seen as a liquidity proxy for china-related risks.

The Australian dollar fell overnight to a record low of $0.7311, a year-and-a-half low, to close at $0.7368.

In commodity markets, copper edged higher on Tuesday, but remained close to a seven-m

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