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European shares hit as China pushes yuan even lower

European shares hit as China pushes yuan even lower
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China’s second devaluation hit the markets. The Yuan sank to a four-year low.

The blue-chip FTSE 100 index was down 1.4 percent by the close dragged lower by Unilever and mining companies. Glencore dropped the most – 5.7 percent on the news from China – the biggest metals consumer. Frankfurt closed 3.2 percent down, Paris 3.4 percent.

“Security is needed, so investors are looking for safety and are observing events in Asia. They are a little bit afraid that the events in China could spread out, and raw materials are feeling the pressure. So people here are being very cautious in the markets today,” explained Arthur Brunner, ICF Bank AG.

In the US shares of carmakers with big exposure to China tumbled between 1.3 and 5.7 percent.

Apple, for whom China is a key growth market fell as much as 3.4 percent to more than a six-month low as some traders warned of a volatile time ahead.