European shares drop sharply as worries over China intensify
* DAX drops, index some 20 pct below 2015 record high
* China worries intensify, miners and car stocks hit hard
* China accelerates devaluation of yuan
By Sudip Kar-Gupta
LONDON, Jan 7 (Reuters) - 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 fell 2.3 percent and 2.5 percent respectively.
Germany's DAX dropped 3 percent, while Britain's FTSE 100 weakened by 2.3 percent.
The DAX and FTSEurofirst were both at their lowest level since early October, with the DAX some 20 percent below a record high reached in April 2015.
"It's looking pretty ugly. We've been scaling down equity positions. It's time to take a step back to re-evaluate the situation," said Andreas Clenow, hedge fund manager and chief investment officer at ACIES Asset Management. Continuación...