European shares set for weekly fall after China's forex fall

viernes 14 de agosto de 2015 04:37 GYT

* FTSEurofirst 300 up 0.3 pct

* TUI extends post-results rise

* Oil and gas firms suffer as U.S. crude falls

By Alistair Smout

LONDON, Aug 14 (Reuters) - European stocks edged higher on Friday, buoyed by auto and travel stocks, although they remained on course for a weekly decline after China moved to weaken its currency.

After devaluing the yuan early in the week, China's central bank said on Thursday the country's strong economy meant there was no reason for the currency to fall further, helping to calm jittery global markets.

Those reassurances helped the pan-European FTSEurofirst 300 close 0.9 percent higher on Thursday. However, it remains down 2.5 percent for the week, its biggest weekly decline in nearly a month, after China's devaluation hit mining, auto and luxury stocks.

The pan-European FTSEurofirst 300 was up 0.3 percent at 1535.18 points by 0747 GMT, with carmakers continuing to rebound, up 1 percent. But traders said they would monitor the yuan in the coming days before making bigger bets.

"It was quite a shock what the Chinese did, there was no pre-warning. As the dust is still settling, the market is pausing here," Markus Huber, senior sales trader at Peregrine & Black, said. "If the yuan (stays) halfway stable over the next few days, then confidence is going to come back."   Continuación...