European shares reduce losses as China suspends market circuit breaker

jueves 7 de enero de 2016 11:57 GYT
 

* FTSEurofirst 300 and Euro STOXX 50 both down 2.2 pct

* Europe stocks off lows as China suspends circuit breakers

* Miners and car stocks hit hard by China worries

* Pandora rallies on solid results (Adds details, updates prices)

By Danilo Masoni and Sudip Kar-Gupta

MILAN/LONDON, Jan 7 (Reuters) - European shares fell sharply on Thursday after China accelerated the depreciation of the yuan, but came off lows after the Chinese securities regulator said it would suspend its new stock market circuit breaker mechanism.

The pan-European FTSEurofirst 300 index and the euro zone's blue-chip Euro STOXX 50 index were both down around 2.2 percent by 1533 GMT, having fallen more than 3 percent earlier in the session.

Gerhard Schwarz, head of Equity Strategy at Baader Bank, said suspending the circuit breaker was a smart move because investors were nervous of not being able to sell.

"In the short term it will add to the volatility but in the longer term it might actually reduce it because nobody will have to rush for an exit," he said.   Continuación...