European stocks advanced, paring a weekly decline as China sought to stabilize trading in its markets.
The Stoxx Europe 600 Index rose 0.2 percent to 347.2 at 8:18 a.m. in London, trimming its drop this week to 5.1 percent. The equity gauge is still heading for its biggest weekly retreat since August, when China’s yuan devaluation sparked a selloff that saw Europe’s benchmark plunge as much as 18 percent from its record.
In China, stocks rebounded today after the government suspended a circuit breaker system, the central bank set a higher yuan fix and state-controlled funds were said to buy equities.
European shares fell for the third time in four days yesterday, extending their worst start to a year since 2000 as cuts to the yuan’s reference rate stoked concern that growth in China’s economy is slowing more than previously forecast.
Companies with the most sales in the world’s second-biggest economy have been hit the hardest, with gauges of commodity producers and energy stocks touching their lowest levels since 2009, and automakers also tumbling. Rio Tinto Group and Glencore Plc led a rebound in miners today with gains of at least 2 percent. Total SA and Royal Dutch Shell Plc dragged energy-related stocks lower, with losses of more than 1 percent.
Germany’s DAX Index advanced 0.2 percent. The equity benchmark, whose exporters have a greater exposure to China, yesterday closed below 10,000 for the first time since October and is heading for a 7 percent weekly decline, its worst since the August selloff.
Among stocks moving today, Norweigan Air Shuttle ASA rose 1.2 percent after saying December traffic volumes rose 9 percent.
Apple suppliers Dialog Semiconductor PLC and ARM Holdings Plc declined at least 1.3 percent after U.S. supplier Cirrus Logic reported preliminary revenue that missed estimates, and Qorvo Inc. predicted earnings lower than previous forecasts.