Today's market movement strongly suggests that markets association of fear with movement in Chinese currency is far from being over. Any weaker fixing, even if slightly more than regular, is still proving to be too much for market bulls to bear. Though the decline in equity prices can't be completely blamed to Yuan as oil price drop again and investors' book profit after steady buying into equities.

However, it is important to note that, as People's Bank of China fixed Yuan weaker by 0.17% weaker at 6.5273 for the day, Japanese benchmark Nikkei and Australia's ASX200 started giving up the gains. Today's weakening was biggest since January 7th. That time consecutive eight daily weakening in Yuan sparked global sell off. So any weakening of Yuan, larger than usual sparking some fear in the market.

Investors, are likely to get used to such volatility when these moves slowly becomes more common.

Equity markets today, firmly in the grips of the bears.

• Australia's ASX200 is down -0.45%.
• Japanese Nikkei is down about -0.4%. Nikkei cash closed down more than 1%.
• India's nifty is down -1.73% in closing.
• FTSE 100 is down -0.75%.
• German DAX is down -0.95%.
• S&P 500 future is pointing to -0.25% loss.

Naturally safe havens are in demand.

• Yen is up 0.9%, trading at 111.9 per Dollar.
• German bund is up 0.1%.
• Gold is up 0.8% for the day, trading at $1218 per troy ounce.