The decision of the People’s Bank of China to devalue the nation’s currency and to allow it to continue to fall is having wide-reaching consequences. Global investor sentiment has been impacted by the yuan’s decline and the resulting sell-off in Asia.
The Toronto Stock Exchange’s main index was down more than 1 per cent Wednesday as commodity prices continued to weaken although oil prices showed some stability.
Wall Street, Asian and European markets all declined too and are likely to continue to be weak in the coming days with the yuan to be allowed to drop by 2 per cent.
The S&P/TSX Composite Index closed down 75.14 (0.52 per cent)
The Dow Jones closed flat
Oil is trending higher (Brent $49.72, WTI $43.33 at 4.20pm)
Gold is trending higher
The loonie is valued at U$0.7703