MARKETS-EUROPE/STOCKS European shares extend sell-off on China concerns

Record ID: 144283

  • Title: MARKETS-EUROPE/STOCKS European shares extend sell-off on China concerns
  • Date: 12th August 2015
  • Summary: FRANKFURT, GERMANY (AUGUST 12, 2015) (REUTERS) EXTERIOR OF STOCK EXCHANGE IN FRANKFURT SIGN READING (German) "FRANKFURT STOCK EXCHANGE" WIDE OF TRADING FLOOR AT FRANKFURT STOCK EXCHANGE BOARD BEFORE STOCK EXCHANGE OPENS DETAIL OF BOARD SHOWING AUGUST 11 CLOSING RATE DETAIL OF BOARD SHOWING AUGUST CLOSING RATE AT 11293.65 POINTS / DETAIL SHOWING A 1.42 PERCENT DECREASE DETAIL OF BOARD SHOWING STOCK EXCHANGE OPENING AT 11151.20 POINTS TRADERS TRADER WATCHING MONITOR ARTHUR BRUNNER FROM ICF BANK AG, WALKING PAST CAMERA (SOUNDBITE) (German) ARTHUR BRUNNER FROM ICF BANK AG, SAYING: "The events of yesterday are continuing. The events in China are dominating the markets with the devaluation (PLEASE NOTE: BRUNNER SAYS REVALUE, BUT MEANS DEVALUE) of the renminbi, and this is dampening the mood. We are presuming that there will be a loss in demand from China, which is affecting automobile shares, but also BASF and all of those who are affected by business in China. They are all being negatively affected." BOARD SHOWING PRICES AND MARKET SHARES (SOUNDBITE) (German) ARTHUR BRUNNER FROM ICF BANK AG, SAYING: "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 this pressure. So people here are being very cautious in the markets today." TRADERS (SOUNDBITE) (German) ARTHUR BRUNNER FROM ICF BANK AG, SAYING: "It (Greece) is on the backburner. The discussions at the moment are simply that the acceptance of the rescue package could be delayed by the German government, which could possibly be compensated by a bridge loan. So at the moment the markets are calm. We are presuming that there will be a solution." STOCK EXCHANGE SYMBOL TRADING FLOOR TRADER WATCHING MONITOR WIDE OF BOARD
  • Embargoed: 27th August 2015 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: General
  • Reuters ID: LVA8LQ0T72FSZII85JSGNTBK14G4
  • Aspect Ratio: 16:9
  • Story Text: European shares extended this week's sell-off on Wednesday after China pushed the yuan even lower, hitting exporters such as carmakers and luxury goods companies.
    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.
    Arthur Brunner, from the ICF Bank AG, predicted negative consequences for those who have business in China.
    "The events of yesterday are continuing. The events in China are dominating the markets," he said. "And this is dampening the mood. We are presuming that there will be a loss in demand from China which is affecting automobile shares, but also BASF and all of those who are affected by business in China. They are all being negatively affected," he told Reuters at the Frankfurt Stock Exchange.
    "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 elsewhere and raw materials are feeling this pressure. So people here are being very cautious in the markets today," he added.
    Markets remain calm but still have an eye on the situation in Greece.
    Greece and its international lenders reached an 85 billion euro bailout agreement on Tuesday (August 11) after nailing down the terms of new loans needed to save the country from financial ruin.
    The deal, which came after 23 hours of talks that continued through the night, must still be adopted by Greece's parliament and by euro zone countries.
    But Germany could delay the deal, according to Brunner.
    "It (Greece) is on the backburner. The discussions at the moment are simply that the acceptance of the rescue package could be delayed by the German government, which could possibly be compensated by a bridge loan. So at the moment the markets are calm. We are presuming that there will be a solution."
    The currency bloc's finance ministers are expected to give their approval on Friday in time for Greece to make a crucial 3.2 billion euro debt repayment that falls due next week.
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