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“If capital were to leave emerging economies, especially those that peg their currencies against the dollar, the natural thing to do is to sell Treasuries”, said Gene Tannuzzo, portfolio manager at Columbia Threadneedle Investments in Minneapolis.

The short-term macroeconomic priorities of RBI are, therefore, clear – to focus on reducing inflation in line with the proposed glide path; work with the government and banks to speed up resolution of dis-tressed projects and cleaning up bank balance sheets; ensure banks...

The Shanghai Composite Index, whose steep drop in recent days triggered worldwide selling, gained 5.3 per cent to close at 3,083.59 points, bouncing back from losses that wiped some 20 per cent off its value over the past week.

China’s central bank cut interest rates and lowered the amount of reserves banks must hold for the second time in two months on Tuesday, ratcheting up support for a stuttering economy and a plunging stock market that has sent shockwaves around the globe. The Nasdaq...

Keith Berlin, director of global fixed income and credit at Fund Evaluation Group in Cincinnati, Ohio, said “markets have awakened to the realization that China’s growth story is not what it once was”.

The Dow was up 332 points, or 2 percent, to 16,203 as of 11 a.m., while the Standard & Poor’s 500 index gained 42 points, or 2.2 percent, to 1,936.

U.S. stocks rebounded in afternoon trading Wednesday after slumping for six straight days on concern that growth in China was slowing more quickly than previously thought.

The Standard & Poor’s 500 index lost 13 points, or 0.6 percent, to 2,083 and the Nasdaq composite fell 29 points, or 0.6 percent, to 5,030.

“The question for investors is when to catch this falling knife”, Barty wrote.

The People’s Bank of China reformed the exchange rate formation system on August 11 to better reflect market development in the exchange rate of the Chinese yuan against the US dollar.

The Dow did rally from that point and ended the day down 588 points.

To put the overall foreign exchange reserves number in perspective, total emerging market foreign reserves in 1999 stood at around US$610 billion. “They’re not sure what’s going to happen overseas, and that uncertainty is winning out”.

The People’s Bank of China, the country’s central bank, on Tuesday morning moved to devalue its tightly controlled currency, the Yuan, following weaker than expected Chinese import and Export data over the weekend.

U.S. inflation in the first half of the year was probably “markedly lower” than reported, but policymakers are unlikely to set interest rates incorrectly as a result, according to an analysis published Monday by the San Francisco Federal Reserve Bank. The Fed stepped...

We are not expecting conditions to worsen in China.