European Stocks Pare Weekly Loss as China Seeks to Calm Markets

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.

Source: Bloomberg

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Japan Stocks Rise for First Time in Three Days Amid China Calm

Japanese stocks rose for the first time in three day days after stability returned to China’s markets. Tire makers led gains, while suppliers to Apple Inc. declined.

The Topix index added 0.6 percent to 1,513.10 as of 9:03 a.m. in Tokyo, with all but five of its 33 industry groups rising. The Nikkei 225 Stock Average gained 0.4 percent to 18,444.15. The yen traded at 119.11 per dollar, near a two-month high. Markets stabilized on Tuesday after Chinese government funds propped up shares in the local market, according to people familiar with the matter. The Shanghai Composite Index cut losses of as much as 3.2 percent to close 0.3 percent lower.

E-mini futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent after the underlying measure gained 0.2 percent Tuesday.

Apple, the world’s most valuable company, tumbled 2.5 percent to its lowest level since October after the Nikkei newspaper reported it cut production of its latest iPhone model by nearly a third. Suppliers Japan Display Inc. lost 2.6 percent and Alps Electric Co. declined 3.4 percent.

Source: Bloomberg

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