European shares fall as China devalues, ZEW weakens
* Germany's DAX falls to lowest since Aug. 3
* BMW, Swatch, LVMH weaker after Chinese move
* Greek shares rise on new bailout deal
* Konecranes shares surge on Terex merger plan (Updates with closing prices)
By Sudip Kar-Gupta
LONDON, Aug 11 (Reuters) - European shares retreated on Tuesday, with carmakers and luxury goods stocks among the worst performers, after China devalued its currency and a report showed economic sentiment weakening in Germany.
China is a top export market for euro zone companies and its devaluation of the yuan has raised the prospect of a new round of currency wars. European equities and export-focused companies have benefited from a weaker euro this year after the European Central Bank began its bond-buying scheme to spur growth.
"There are concerns about the pressure on earnings from European companies exposed to China over the next six months," said Dennis Jose, a strategist at Barclays. "If we see more depreciation it could get worse."
The pan-European FTSEurofirst 300 index and the euro zone's Euro STOXX 50 index both closed about 1.7 percent lower. Germany's exporter-heavy DAX index lost some 2.7 percent, falling to its lowest level since Aug. 3. Continuación...