The US markets ended in green with gains of over one percent on Tuesday on account of bargain hunting, with traders picking up stocks at reduced levels after the major averages ended Monday's trading at their lowest closing levels in two months. A report stated that the People's Bank of China set the midpoint for the Chinese currency at a stronger than expected level also helped ease investor jitters. Traders were too encouraged by China’s central bank moving to restrain the fall in its currency with a fix Tuesday at 6.9683 yuan. A breach of the 7-to-the dollar level on Monday, interpreted by some as an intentional weakening of its currency, helped to ignite a global stock market selloff and slump in bond yields.
A recent drop in the value of the Chinese yuan further fueled speculation Beijing is devaluing its currency to counter President Donald Trump's latest tariff threat. After refusing to do so several times in the past, Treasury Secretary Steven Mnuchin officially declared China a currency manipulator on Monday. The Treasury Department said Mnuchin will subsequently engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China's latest actions. On the economic front, job vacancies fell slightly to 7.35 million in June according to the US Labor Dept’s JOLTS report.
Dow Jones Industrial Average surged 311.78 points or 1.21 percent to 26029.52, Nasdaq gained 107.22 points or 1.39 percent to 7833.27 and S&P 500 was up by 37.03 points or 1.30 percent to 2881.77.
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