US stocks opened higher on Tuesday as China stepped in to stabilise the yuan, a day after Wall Street's main indexes racked up their steepest one-day percentage fall of the year.
Wang Xin, Director General of the Research Bureau of the People's Bank of China: "The recent depreciation of the RMB exchange rate has been driven and determined by market forces. The People's Bank of China has been working hard to maintain a stable and balanced RMB exchange rate, and strongly supported the recovery of the global economy. China has always insisted on not doing competitive devaluation. China has not and will not use the exchange rate as a tool during trade disputes."
US President Donald Trump on Tuesday dismissed concerns over a protracted trade war with China, saying the United States was "in a very strong position," a day after his administration ratcheted up tensions by labelling Beijing a currency manipulator.
Steve Pruitt, Managing Partner, Watts Partners: "I don't know how much longer President Trump will be able to continue to tell people, now with especially with this new set of tariffs, that the Chinese are paying us billions of dollars. When they go to Walmart and see something is no longer 9. 99 but 11.99 or 12.99, they are going to notice right away."