European shares drop sharply as worries over China intensify

jueves 7 de enero de 2016 07:46 GYT

* Germany's DAX index 20 pct below 2015 record high

* China worries intensify, miners and car stocks hit hard

* China accelerates devaluation of yuan

* Volatility index surges to mid-Dec levels (Adds details, updates prices)

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 both fell around 3.3 percent by 1125 GMT.

Germany's DAX dropped 3.6 percent, while Britain's FTSE 100 weakened by 2.7 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.   Continuación...