LONDON — Europe’s markets all fell in trading Tuesday morning.
The CAC 40 in Paris was down 0.6 percent to 5,164.86, while the DAX lost 0.5 percent to 11,539.72. The FTSE 100 in London fell 0.4 percent to 6,797.09 and the FTSE MIB in Milan slipped 0.1 percent to 23,937.00.
The markets fell as the People’s Bank of China on Tuesday devalued the yuan by almost 2 percent against the U.S. dollar, in a move that the bank said would make the exchange rate “more consistent with the needs of market development.” The bank took action after China reported last week that the country’s exports fell 8.3 percent in July compared to the same month last year, affected both by the strong yuan and a dip in demand in Europe.
The devaluation of the yuan hit a number of fashion and luxury stocks with business in the region, alongside sending mining stocks down.
Luxury fallers included Hermès, 3.3 percent to 340.80 euros; LVMH Moët Hennessy Louis Vuitton, 3.5 percent to 168.15 euros; Kering, 2.3 percent to 175.65 euros and Burberry, 2.3 percent to 15.70 pounds.
The few stocks that rose in the morning’s trading numbered Pandora, 1.5 percent to 789.50 Danish kronor, as the jewelry firm said Tuesday that its Q2 net profits rose 37.5 percent to 910 million kronor, or $135.8 million. Also up were Jimmy Choo, 0.4 percent to 1.82 pounds; MySale Group, 0.5 percent to 0.48 pounds and Koovs, 0.6 percent to 0.73 pounds.
At 11.04 a.m. CET, the pound traded for $1.55, while the euro went for $1.10 and the Danish krone for $0.14.