European stocks succumbed to fears of a slowing Chinese economy, with exporters leading the losses.
The Stoxx Europe 600 Index gave up two-days of gains, slipping 1.8 percent to 381.31 -- its lowest level in six weeks -- at the close of trading. Automakers and chemical companies retreated more than 2.4 percent, while a gauge of commodity producers closed at its lowest level since 2009.
Glencore Plc tumbled 9.7 percent to a record low after the miner posted a slump in profit. PSA Peugeot Citroen and Daimler AG lost at least 2.6 percent, while BASF SE fell 2.7 percent.
“It will be interesting to see at what point investors step in,” said Nick Lawson, the London-based global co-head of macro at Deutsche Bank AG. “The likes of autos, industrials and chemicals will catch up and we saw that in the moves post the PBOC intervention last week as the market moves away from growth and deflation towards income.”
Since the People’s Bank of China devalued the yuan, investors wary of its effect on demand for goods from commodities to cars have sent the Stoxx 600 down 4.6 percent.
Germany’s DAX Index, which closed yesterday below its 200-day moving average for the first time since January, slid another 2.1 percent. Lanxess AG dropped the most, sinking 5.6 percent as Exane BNP Paribas said the maker of synthetic rubber could be replaced by Deutsche Annington Immobilien SE in the German stock gauge. Deutsche Annington climbed 1.3 percent.
Riskier assets are also coming under pressure as the Federal Reserve moves closer to its first rate increase since 2006. Minutes of the central bank’s July meeting are due today after the close of European trading.
Among stocks moving on corporate news, Carlsberg A/S tumbled 9.2 percent after the world’s fourth-biggest brewer reported second-quarter profit that missed estimates, and forecast a drop in annual profit. Sydbank A/S lost 5.2 percent after posting net income that fell short of projections. Swisscom AG dropped 2.5 percent after second-quarter revenue missed projections.
Raiffeisen Bank International AG jumped 6.9 percent after the second-biggest lender in eastern Europe said net income grew, beating analyst estimates. Admiral Group Plc advanced 3.8 percent after the U.K. car insurer announced a higher-than-forecast dividend. Hikma Pharmaceuticals Plc climbed 2.6 percent after its chief financial officer said it would consider another large deal when debt is paid down.
Bucking the trend, Greece’s ASE Index advanced 0.3 percent. Germany’s parliament voted in favor of an aid package for the Mediterranean nation of as much as 86 billion euros ($95 billion).