European stocks fall to lows for two months due to China-related concerns

(Reuters) – European stocks fell to their lowest level in two months on Monday, as global sales triggered by trade tensions drove the Chinese yuan to its lowest level in more than a decade.

The STOXX 600 index of European stocks fell 2.3%. Taking into account Friday 's losses, the index suffered the biggest loss in two days in over three years, as traders rushed to sell stocks and buy safe havens such as bonds. State.

Rio Tinto and BHP Mining fell more than 2%, while Arcelor Mittal Steel fell more than 4% after Beijing allowed the yuan to exceed $ 7, increasing the cost of copper and iron on their largest world markets.

The index of commodities fell 2.9% to reach its lowest level in seven months.

Shares of luxury goods companies such as Louis Vuitton and Richemont and Swatch watchmakers, which account for a significant portion of their revenue in China, declined from 3.9% to 6.8%, resulting in a decline of 3.5%. % of the index of personal and household goods,.

SABB Software was one of the biggest losers in the Stoxx 500 index, while chip makers EMS, Infineon and ST Microelectronics also fell.

HSBC, which focuses on Asia, was also the main drag on the benchmark, down 3% after the Asian-focused bank announced the departure of its chief executive, John Flint.

Linde Gas rose 2.5%, the largest support of the Stoxx 600 index, after its quarterly results exceeded expectations and supported a second year – to – year increase this year. year.

(Reuters)