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Power Play: Why China is hurting emerging markets

Workers producing clothes in a factory in Huaibei, China.
STR | AFP | Getty Images
Workers producing clothes in a factory in Huaibei, China.

The market is selling off this summer due to concerns about China, Greece and the Fed. Since June 21, the Dow is down more than two percent.

Joseph Tanious, investment strategist at Bessemer Trust, tells CNBC's "Power Lunch" on Monday that China's currency devaluation is adding to the market anxiety.

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"If the weakness is the start of a much larger devaluation, we could see other central banks weaken their currencies to maintain export competitiveness. This is what markets are nervous about – that this devaluation is in fact for economic reasons," Tanious said.

He believes the devaluation may lead to weaker commodity prices and further downward pressure on emerging market countries.

"We remain comfortable with our underweight exposure to China and EM more broadly," Tanious said.

The Dow, S&P 500 and Nasdaq are higher during trading, erasing earlier losses.