For the second time in a row, China devalued its currency, shocking the global markets and bringing down stocks and commodities.

Chinese authorities were pushed to devalue Yuan after a series of poor economic numbers show that the efforts to boost exports has failed. The Yuan dropped to as much as 1.98% Wednesday. According to UBS Wealth Management global asset allocation head Mad Pedersen, China's economy is sinking and the devaluing of Yuan wasn't just a one-off.

China's move to devalue Yuan last Wednesday triggered speculations among financial markets, fearing that the country's economy is not as stable as investors believe it to be. Traders dread a possible currency war that could badly affect the world economy, leading to the sharp drop of shares in the Asian and European stock exchanges. Commodity prices also dwindled in a downward curve.

Some will lose while some will benefit from this move. Chinese textile, car companies, and other exporters could be more driven and competitive. Foreign retailers will find this news beneficial as Chinese consumer goods, services, products, and components will become cheaper. Foreigners who will visit china will get marginal benefits due to the lower value of the Yuan.

Those who are at a disadvantage include the Chinese companies who will have to pay higher interest rates on debt they own from foreign countries. Chinese air carriers are also vulnerable to foreign currency debts. Businesses exporting products to China will also find it hard to sell because whatever they sell will become more expensive, especially the luxury goods. Mining firms are also among those that are hit hard by the devaluation of the Yuan.

US stock indexes fell by 1.4% during midsession. Metal prices also fell to its lowest in many years. US dollar also dropped against the yen and the euro. The issues surrounding China may discourage the US Federal Reserve from increasing their interest rates.