China's 2 percent devaluation of the yuan on Tuesday pushed the dollar higher and hit Wall Street and other global equity markets as it raised fears of a new round of currency wars and fed worries about slowing Chinese economic growth.
U.S. stock indexes slumped more than 1 percent and stocks also fell in Asia and Europe as investors contemplated the implications of a move designed to support China's slowing economy and exports. The MSCI All World Index of global shares fell 1.14 percent.
"What is good for growth in China is unfortunately bad for everybody else," said Bill McQuaker, co-head of the multiasset team at Henderson Global Investors.