Market Update

Chinese central bank shocked the market once again with another unexpected yuan devaluation.  Such move caused a market turmoil and sparked a massive sell-off of the stocks, commodities and the U.S. dollar.

The People's Bank of China (PBoC) set the yuan fixing at 6.33 against the U.S. dollar on Wednesday, 1.6 percent weaker than the previous day's level, signaling its commitment to the change it set out on Tuesday: daily fixings would now be determined by the previous day's closing spot prices and market-moves of other major currencies .

Another hot story of today is the U.K. employment data. U.K. unemployment rose in the second quarter and total wage growth slowed, suggesting some easing in the recovery of the labor market. On a rolling quarterly basis, it’s the first consecutive decline in payrolls in more than two years. The pound erased its advance against the dollar after the report was published.

European equities opened sharply lower on Wednesday as a yuan-related selloff in Asian stocks weighed on investor sentiment. The rapid drop in the value of China's currency - around 4 percent in the last two days - dealt a body blow to appetite for risky assets globally, with equities, currencies and commodities coming under selling pressure as money managers feared it could ignite a currency war that would destabilize the global economy.