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Chinese stocks and the yuan fell on Monday after Trump threatened new tariffs, with investors caught off guard. The yuan dropped to 6.7994 per dollar in early onshore trade, its weakest level in three and a half months.
The offshore yuan fell as much as 1.3%.
New tariff threats weaken the yuan and sour Chinese demand expectations for US farm goods, pressuring US feed grain and soybean prices.
reuters.comLuoyan Liu, Andrew GalbraithMay 6, 2019After 40 past bullish trade events, Chinese Yuan (CNY per USD) moved a median +0.6% over 5 sessions (75% higher; middle half +0.0% to +1.4%), and +1.1% over 20.
After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% over 20.
After 683 past bearish trade events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
