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在线翻译:
szdaily -> Markets -> 
Yuan rises sharply, stocks drop again
    2018-07-05  08:53    Shenzhen Daily

THE yuan rose sharply against the U.S. dollar yesterday, a day after the central bank assured markets it would keep the currency stable amid heightened worries about trade frictions, although stocks remained under pressure.

Chinese currency and equity markets have been volatile ahead of July 6, when U.S. tariffs on US$34 billion worth of Chinese goods are set to kick in. China has said it would retaliate with tariffs on U.S. products.

The yuan had its worst month on record in June, losing about 3.3 percent of its value against the greenback, and the slide continued Monday, the first trading day of July.

On Tuesday, though, it rebounded after the remarks from People’s Bank of China Governor Yi Gang and continued to ride the updraft yesterday, putting the yuan for its first two-day winning streak since the middle of June and best day since late March.

A trader at a domestic bank said the People’s Bank of China’s signal was clear, but the market would closely watch and react to developments ahead of July 6.

“In the short term, the yuan will continue consolidating at the current level, while sharp, one-way falling might have come to an end,” the trader said.

Key Chinese equity indexes were less enthusiastic, starting the day flip-flopping around Tuesday’s closing prices before sliding into negative territory and staying there.

The benchmark CSI300 Index was down 1.34 percent and the Shanghai Composite Index was off 1 percent.

A person with knowledge of the plan said that Chinese tariffs on US$34 billion of U.S. goods would take effect from midnight Beijing time July 6 in response to the U.S. move.

In flagging its first move, the United States said it would implement its tariffs July 6, but the 12-hour time difference technically puts China ahead in imposing its reciprocal measures.

Separately, the central bank of Singapore, whose economy is heavily reliant on global trade, warned risks to the global growth outlook have significantly increased due to the intensifying trade row between China and the United States.

“Investors are quite pessimistic at this point, and the downward correction for traditional blue-chips, represented by the heavyweight ‘nifty 50’ firms, is not over yet,” said Wang Mingli, an analyst with Guoyuan Securities. (SD-Agencies)

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