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Market recap: The morning's enthusiasm over China's currency move dissipated through the...

Market recap: The morning's enthusiasm over China's currency move dissipated through the afternoon, as the downgrade of a major European bank brought eurozone worries back to the forefront. Tech stocks tumbled after Barnes & Noble (BKS) and Amazon (AMZN) announced price cuts for their e-readers. On the broad market, NYSE decliners outpaced advancers two to one.
Comments (5)
  • dinamo7
    , contributor
    Comments (186) | Send Message
     
    whose enthusiasm? the machines? the reversal is the fault of AMZN lowering e-reader prices? LOL
    21 Jun 2010, 04:22 PM Reply Like
  • Barry Crocker
    , contributor
    Comments (454) | Send Message
     
    This notion that an increased Yuan is good for Chinese importers is a tad flawed isn't it ? Comodities will move with it. We saw that straight after the announcement and ore contracts etc are no longer fixed for an extended time. Most are quarterly.
    21 Jun 2010, 05:22 PM Reply Like
  • daniel3582
    , contributor
    Comments (119) | Send Message
     
    Just in time.... for all you EURUSD shorts.... two words: wide stops.
    21 Jun 2010, 06:13 PM Reply Like
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    Tech came off on fears that component costs are going up with more expensive yuan.

     

    WMT moved for the same reason.
    22 Jun 2010, 02:28 AM Reply Like
  • Tack
    , contributor
    Comments (14581) | Send Message
     
    All the joy expressed by the currency re-balancers escapes me.

     

    A rising Yuan means that vast quantities of things we import from China --almost none of which we manufacture-- become more expensive, costing consumers more, leaving less capital available for other purchases and uses in our domestic economy. And, attempting to offset this large effect, the relatively few companies that export to China in quantity get better margins.

     

    And, on China's side, either they have to reduce margins, or if prices rise in dollars, then, exported volumes stand to decrease.

     

    How is this all so wonderful?
    22 Jun 2010, 03:47 AM Reply Like
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