Worst day of the year for European stocks

[marmar]

Europe’s benchmark stock posted its worst one-day loss since October last year on Wednesday, after the country’s central bank allowed the tightly controlled yuan to slide even further, raising more concerns about the health of the world’s second-largest economy.

The Stoxx Europe 600 index SXXP, -2.70% slumped 2.7% to 382.99, building on a 1.6% loss from Tuesday, when markets globally were hit by the People’s Bank of China’s decision to devalue the yuan USDCNY, +0.9675% Analysts interpreted the move, through a shift to a more market-driven rate, as the restart of “currency wars” in which countries try to weaken their currencies to spur growth and boost exports.

The move in the yuan has hit European companies who rely on Chinese demand for their products particularly hard.


On Wednesday, China again allowed the yuan to depreciate again, sending it almost 1% lower against the greenback at the end of trade.

“If there was any doubt that this was not turning into a currency war, then the argument is looking increasingly tenuous now,” said Richard Perry, market analyst at Hantec Markets, in a note. ..................(more)

http://www.marketwatch.com/story/china-concerns-slam-european-stocks-lower-for-second-day-2015-08-12

[Warpy]

1. Not looking good for the Dow, either

Monday's gain has mostly been erased.

Gotta love panicky people jumping over the cliff.

ETA: Down 244 points at present, headed lower.