Richest man Jeff Bezos lost $5.2b in a tumultuous day. Photo / AP
Richest man Jeff Bezos lost $5.2b in a tumultuous day. Photo / AP
The world's richest people have woken up a whole lot poorer following a stock market rout that marked Wall Street's worst day of trading this year.
Richest man Jeff Bezos lost A$5.05 billion ($5.2b) in a tumultuous day of trade after the US branded China a "currency manipulator".
Bill Gateslost more than A$2.95b, while Bernard Arnault lost A$4.79b. Warren Buffett's wealth dropped by A$2.77b and Mark Zuckerberg's fell by A$4.13b.
But don't feel too sorry for the world's wealthiest men who still have vast fortunes. Bezos has a total net worth of A$162b according to the Bloomberg Billionaires Index, while Bill Gates is worth A$153b.
Arnault has a A$138b fortune while Warren Buffett's cashpile is estimated at A$115b. Mark Zuckerberg has A$104b from his Facebook empire.
The losses came as stockmarkets from the US to Europe were awash in a sea of red after the US Treasury designated China a "currency manipulator" for devaluing the yuan against the US dollar.
The People's Bank of China hit back and called on the US to "pull back before it is too late" and return to a "rational and fair track" according to Xinhua reports.
The fallout wiped A$86b off the ASX and prompted former Liberal treasurer Peter Costello to warn there would be "a lot of uncertainty and a lot more gyrations on global markets in the weeks ahead."
"Australian retirees have lost money … superannuation funds have lost money. If this were to continue, this will affect Australian savings and ultimately will affect the budget," he told The Australian.
On Tuesday markets breathed a sigh of relief as the conflict appeared to be de-escalating.
White House economic adviser Larry Kudlow said President Trump wanted a trade agreement with China but it must be "the right deal."
"The president was not happy with the progress" of talks in Beijing earlier this month, Kudlow told CNBC.
Facebook CEO Mark Zuckerberg's fortune fell by A$4.13b. Photo / Getty Images
"The president is defending the American economy" against "a lot of unfair trading practices."
Kudlow said Trump "would like to continue negotiations, he would like to make a deal, it has to be the right deal for the United States
Monday's sharemarket rout was deemed a "bloodbath" by traders with the biggest losses seen on Wall Street as China allowed the yuan to slide.
It came after President Trump announced a fresh round of tariffs against Chinese goods that would subject virtually all of the US$660b in annual merchandise trade between the two economies to punitive duties.
The yuan's slump fuelled speculation Beijing is allowing its currency to devalue to support exporters and offset Trump's threat to hit US$300b in Chinese goods with 10 per cent tariffs.
However on Tuesday the People's Bank of China fixed the yuan at a higher level against the dollar than analysts had expected, signalling a degree of détente.
"Markets are relieved with the PBOC's decision to weaken the yuan at a slower pace, a sign that we might not just yet see the peak escalation in the US-China trade war," said Edward Moya, an analyst at OANDA.
Still, he said, "continued yuan depreciation should be expected, albeit at a staggered pace".
"Sentiment appears to be easing a bit as China took measures to stem the slide in its currency," Charles Schwab analyst said.
