China's devaluation of its currency is the cause the market plunging for a week straight. According to the news the chines govt. has installed circuit breakers to automatically stop trading if the market index goes down by 7% (and it has happened twice this week so far). The devaluation of china's currency yuan vs US$ (and other world currencies will impact china's trade with its partners (fearful of its somewhat unknown impact), supposedly, and creating an imbalance in trade. China's economy is also showing signs of a weakness and so is the rest of the world. It looks like this slide can continue even if there is a slight lull in the selling. Watching the charts it seems identical to the market drop of Aug 2015 and this is proving to the one of the worst market conditions for the beginning of a new year.
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