For the second day in a row, China has cut its yuan rate, and global markets were quick to react negatively.
Internationally, stock markets went down in reaction to the second devaluation of the yuan, making the currency 3.5 percent less valuable in the past two days. The U.S. markets fell as well early this morning, but recovered by end of the day.
As of now, every U.S. dollar is worth 6.31247 yuan.
China’s move to stabilize its currency comes after concerns about a slowing growth rate, falling retail sales and a rocky stock market have plagued the country in recent months. The move by China also makes U.S. goods more expensive in one of the key growth markets for U.S. brands like Coach and Nike.
Footwear and retail stocks were not immune to the move in China, and many closed down, in part due to the instability.
Adidas Group shares fell 3.7 percent to $68.67. Nike Inc. also felt the pressure as its shares slipped 1.2 percent to $113.06. Skechers Inc. also dipped over 5 percent and closed at $148.95 after hitting a 52-week high just last week. Wolverine was also in the red 1.2 percent to $28.61. Coach Inc. slipped over 4 percent today too.
The move by the government to stabilize its currency has sparked concerns about the health of the global economy. It has also raised questions about how far the government in Beijing will go to boost its economy and markets.