ROME: European stocks fell the most in six weeks, with autos, miners and consumer-goods companies sensitive to China sliding as the yuan’s devaluation continued to roil global markets.
Unilever lost 5.3 percent, dragging personal-and-household-goods companies to the worst performance of the 19 industry groups on the Stoxx Europe 600 Index. Rio Tinto Group lost 1.7 percent and Glencore Plc slid 6.7 percent, sending resource shares lower amid concerns that the yuan’s slide will sap demand for commodities. Daimler AG and BMW AG led auto companies lower.
The Stoxx 600 retreated 2.2 percent to 384.82 at 10:26 a.m. in London. France’s CAC 40 slipped 2.8 percent, the most among western-European markets, as Valeo SA, Peugeot SA and LVMH Moet Hennessy Louis Vuitton SE dropped more than 4 percent.
“Right now the world’s major concern has moved from Greece to China,” said William Hobbs, head of investment strategy at Barclays Plc’s wealth-management unit in London. “While we see a soft landing scenario is more likely in China and the U.S. consumer still feels good, the world feels quite nervous now.”
The Chinese currency tumbled following the surprise move to shift to a more market-determined rate, with concern increasing that the world’s second-largest economy is faltering. Traders are now seeking safety in government debt amid reduced inflation expectations.
Among European stocks moving on corporate news, Henkel AG slid 6.4 percent after the maker of Schwarzkopf shampoo and Loctite glue reported second-quarter earnings that fell short of analyst estimates.
