#AceMarketsNews -LONDON (Reuters) Aug.11: In a surprise move China reverses currency decision and devalues the yuan. Of course l published a post last week about the China currency exchange adding the ruble to its bag thus affecting the U.S. dollar even further. Today this move now makes UK imports even more expensive.
Now if l was a betting man l would say this calculated moved heralds the next #BRICS move in getting Yuan as the next major currency. Next …..!
The affect of today’s move so far is:
Britain’s benchmark share index fell on Tuesday, hit by stock price falls for mining companies and luxury firm Burberry after China devalued the yuan, raising the costs of imports.
China devalued the yuan on Tuesday after a run of poor economic data, guiding the currency to its lowest point in almost three years in a move that economists said was aimed at helping exporters.
Burberry was the top faller in early trading, losing 2.2 percent.
“A weaker yuan makes imports more expensive and with China accounting for some 14 percent of the company’s sales, the implication is clear,” Trustnet Direct analyst Tony Cross said.
Mining groups BHP Billiton, Glencore, Antofagasta and Rio Tinto were down between 1.5 and 2.1 percent. Copper fell 1.5 percent after the move by China, which is the world’s biggest consumer of metals.
The mining sector was down 2.3 percent, moving back towards a six-year low hit in late July.
Britain’s FTSE 100 was down 40.61 points, or 0.6 percent, at 6,695.61 by 0738 GMT. Weakness in commodity stocks has contributed to recent falls in the index, which is now 6 percent off an all-time high hit in April.
Outside blue-chip stocks, Just Retirement rose 1.9 percent, making it a top FTSE 250 riser.
The British retirement specialists plan to merge with Partnership Assurance in an agreed all-share deal worth 669 million pounds, after both companies have been squeezed by recent pension reforms.
Partnership Assurance rose 8.2 percent.
“The merger represents a sensible strategy in our view for Just Retirement and Partnership to continue their growth in the changing retirement income space,” Banco Espirito Santo analysts said in a note.
Outsourcer Serco also rose 1.9 percent, having been as up as much as 6 percent after it posted a better-than-expected fall in revenue in its first half, allowing it to maintain its full-year profit guidance.
(Editing by Louise Ireland)
FTSE 100 falls as China devaluation hits Burberry, mining stocks
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