12th August 2015
Stocks in Europe slipped for the second day in a row on Wednesday (August 12th), impacted by concerns that the decision to devalue China's currency could hinder global growth.
A host of mining-related shares were hit by the biggest losses on the Stoxx Europe 600 Index, on the back of fears that the yuan's devaluation could see demand for commodities dry up.
Overall, the index shrank by 1.5 per cent to 387.55 by 08:26 BST. Stocks that are sensitive to changes in China's economy - such as miners, car makers and luxury goods firms - led the decline.
Metals and mining corporation Rio Tinto Group shed 2.8 per cent, while commodity trading and mining company Glencore lost 5.1 per cent. Auto-related stocks didn't fair much better, with Daimler AG and BMW AG both slipping by three per cent.
Yesterday, the People's Bank of China shifted the yuan to a more market-determined rate, taking investors by surprise. The move fuelled more concerns about a possible slowdown in the world's second-largest economy.
Last month, industrial output increased at a worse-than-expected rate, further encouraging worry among traders, which has led them to seek more stability in government debt.
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