Global Markets Turmoil After China Extends Currency War To 2nd Day – Devalues Yuan To 4 Year Lows

• Global Markets Turmoil After China Extends Currency War To 2nd Day – Devalues Yuan To 4 Year Lows  
  by Tyler Durden, www.zerohedge.com  
  Chinese stocks opened lower, extending yesterday’s losses, after The PBOC weakened its Yuan FIX dramatically for the 2nd consecutive day (from 6.1162 Monday to 6.2298 last night to 6.3306). Offshore Yuan fell another 9 handles against the USD after China closed but was hovering at 6.40 as the market opens (now at 11 handles weaker at 6.51). Bear in mind the utter devastation in Chinese credit markets that data showed occurred in July, it remains ironic that for the 3rd days in a row, Chinese margin debt balances grew. Before the real fun and games started, Chinese officials once again exclaimed that their data is real (denying any mismatches between GDP Deflator and CPI) asChina CDS spiked to 2 year highs. US equity futures are tumbling, bonds bid, and gold bouncing off the initial jerk lower.
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  PBOC makes some comments (like last night’s)…
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  *PBOC SAYS NO ECONOMIC BASIS FOR YUAN’S CONSTANT DEVALUATION
  *PBOC SAYS YUAN WON’T CONTINUOUSLY DEVALUE
  *PBOC SAYS MOVE OF YUAN REFERENCE PRICE IS NORMAL
  *CHINA YUAN MECHANISM CHANGE MAKES FIXING RATES MORE REASONABLE
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  And then there is this (from Xinhua):
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  read more.

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