When major financial events take place in August, the consequences are hard to predict. One situation may end in catastrophe as sharp moves are exaggerated by the illiquidity of the vacation month, while on another occasion there are too few people around to care. After an initial hiccup it is quickly forgotten. China's move to devalue its currency certainly took investors by surprise last week - and made headlines around the world - but the market reaction was muted. Tuesday's decision had little immediate effect on stock markets in Hong Kong or on the mainland. The ripples were larger the further one went from the epicentre, with German stocks falling 5.9% over two days. But they had dissipated before reaching the shores of the US, where shares fell just 1%.
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