European shares drop sharply after China's yuan move spooks investors

jueves 7 de enero de 2016 13:52 GYT

* FTSEurofirst on track for steepest fall since end-August

* Share prices off lows as China suspends circuit-breaker

* Miners and car stocks hit hard by China worries

* Pandora rallies on solid results (Adds closing 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 were helped off their lows after the Chinese securities regulator said it would suspend its new stock market circuit-breaker mechanism.

The pan-European FTSEurofirst 300 index closed down 2.3 percent and the euro zone's blue-chip Euro STOXX 50 down 1.7 percent, having fallen more than 3 percent during the session.

The People's Bank of China surprised markets by setting the official mid-point rate on the yuan at 6.5646 per dollar, the lowest since March 2011.

Less than half an hour after the opening, Chinese stock markets were suspended for the rest of the day as a new circuit-breaking mechanism was tripped for the second time this week.   Continuación...