Asian and European stock markets were mixed overnight. Asian stock markets were down and European stock indexes were higher. U.S. stock indexes recovered from follow-through early overnight losses and are set to open higher when the New York day session begins. Serious near-term technical damage has been inflicted on the U.S. stock indexes, to suggest they have put in at least near-term tops. Remember that the historically turbulent stock market months of September and October are right around the corner.

News late Monday that the U.S. labeled China a currency maninpulator initially pushed world stock markets still lower, following Monday’s steep losses. However, China’s central bank then set its currency, the yuan, exchange rate with the U.S Dollar at 6.9683, which was 0.7% down from Monday’s fixing. The yuan depreciated to an 11-year low against the U.S. dollar Monday, at 7.1087 to the dollar. The move on Monday led to ideas China has thrown in the towel on any trade agreement with the U.S. coming anytime soon. However, Tuesday’s yuan fixing below 7 gave pause to those thinking the Chinese government will let the yuan continue to depreciate against the U.S. dollar. Also, China’s central bank knows the downside of letting the yuan fall in value--one being flight of capital out of China, which has very likely already been occurring.

President Trump announced last week that on September 1 the U.S. will impose another 10% tariff on Chinese imports into the U.S. China, in turn, announced it will suspend its purchases of U.S. agricultural products.