London: European shares fell sharply on Thursday after China accelerated the depreciation of the yuan, sending currencies across the region reeling and domestic stock markets tumbling.
The pan-European FTSEurofirst 300 index and the euro zone's blue-chip Euro STOXX index both fell 2 per cent. Germany's DAX declined 1.4 per cent, while Britain's FTSE 100 weakened by 1.6 per cent.
The People's Bank of China (PBOC) again surprised markets by setting the official midpoint rate on the yuan, also known as the renminbi (RMB), at 6.5646 per dollar, the lowest since March 2011.
© Thomson Reuters 2016