Euro­pean shares ex­tend sell-off on China con­cerns

The Pak Banker - - BUSINESS -

LON­DON: Euro­pean shares ex­tended a sell-off on Wed­nes­day from the pre­vi­ous ses­sion as con­cerns over China's cur­rency de­val­u­a­tion weighed on global stock mar­kets and hit Euro­pean ex­porters.

The pan-Euro­pean FTSEurofirst 300 in­dex fell 1.2 per­cent, while the euro zone's blue-chip Euro STOXX 50 in­dex de­clined by 1.5 per­cent. The FTSEurofirst had al­ready fallen by 1.7 per­cent in the pre­vi­ous ses­sion. China's yuan hit a four-year low on Wed­nes­day, fall­ing for a sec­ond day af­ter author­i­ties de­val­ued it in a move that sparked fears of a global cur­rency war and ac­cu­sa­tions that Bei­jing was giv­ing an un­fair ad­van­tage to its strug­gling ex­porters. The slump in the yuan has im­pacted Ger­man car­mak­ers and Euro­pean lux­ury goods stocks, since China is one of their top ex­port mar­kets. It has also weighed on energy and min­ing shares as China is a top global con­sumer of com­modi­ties. The STOXX Europe 600 autos sec­tor fell 2.4 per­cent while the in­dex hous­ing the re­gion's top lux­ury goods mak­ers also slid 2.5 per­cent lower. Con­sumer goods group Unilever also de­clined by 3.2 per­cent af­ter be­ing down­graded by Gold­man Sachs.

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