- Title: MARKETS-STOCKS/USA OPEN Wall St. opens lower as China weakens currency
- Date: 11th August 2015
- Summary: NEW YORK, NEW YORK, UNITED STATES (AUGUST 11, 2015) (REUTERS) (SOUNDBITE) (English) SAM STOVALL, U.S. EQUITIES STRATEGIST AT S&P CAPITAL IQ, SAYING: "Well, typically when you devalue your currency that ends up being stimulative for your own economy, makes your exports more competitive globally, but it also ends up being slightly inflationary. So, I would actually say that's good for the prospect that the U.S. will continue with it's likelihood of raising rates in September because that would imply that the Chinese economy might end up being slightly more stimulated and as a result could help overall global GDP growth."
- Embargoed: 26th August 2015 13:00
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- Topics: General
- Reuters ID: LVABXKV1UUEGASFO2FO4INTF1RU7
- Aspect Ratio: 16:9
- Story Text: U.S. stocks opened lower on Tuesday (August 11) after China's surprise devaluation of the yuan increased unease about the health of the world's second-largest economy and pushed the dollar higher.
Despite the initial drop in markets, analysts expect the devaluation to be a positive for global growth.
"Typically, when you devalue your currency that ends up being stimulative for your own economy, makes your exports more competitive globally, but it also ends up being slightly inflationary," explained Sam Stovall, a U.S. equities strategist at S&P Capital IQ.
"I would actually say that's good for the prospect that the U.S. will continue with it's likelihood of raising rates in September because that would imply that the Chinese economy might end up being slightly more stimulated and as a result could help overall global GDP growth."
At 9:31 a.m. EDT the Dow Jones industrial average was down 102.56 points, or 0.58 percent, at 17,512.61. The S&P 500 was down 10.49 points, or 0.5 percent, at 2,093.69 and the Nasdaq composite was down 30.64 points, or 0.6 percent, at 5,071.16. - Copyright Holder: REUTERS
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