This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-33879233

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
FTSE 100 drops as yuan fall hits markets FTSE 100 drops as yuan fall hits markets
(about 4 hours later)
The FTSE 100 sank more than 1% as trading got under way, after further falls in the Chinese yuan continued to rattle the market. The UK stock market was down 1% by lunchtime, with mining stocks bearing the brunt after a further fall in the Chinese yuan hit prices of metals.
After Tuesday's 1.9% devaluation, China's central bank cut the guiding rate for the yuan for a second day.After Tuesday's 1.9% devaluation, China's central bank cut the guiding rate for the yuan for a second day.
The fall in the yuan has hit commodity prices, which drove down share prices in the big UK-listed mining companies. The fall in the yuan has hit commodity prices, driving down share prices in the big UK-listed mining companies.
The FTSE 100 dropped 78.47 points to 6,586.07. Mining giant Glencore fell 5% and BHP Billiton dropped more than 3%. The FTSE 100 was down 69.12 points at 6,595.42, with shares in mining giant Glencore falling 5.3%.
The losses were echoed across other major European stock markets, with Germany's Dax index down 1.7% and France's Cac 40 index 1.5% lower. The losses were echoed across other major European stock markets, with Germany's Dax index and France's Cac 40 both down 2%.
Companies with direct exposure to China came under pressure. Shares in fashion house Burberry, which does big business in China, fell nearly 3%, having dropped more than 4% on Tuesday. Companies with direct exposure to China came under pressure. Shares in fashion house Burberry, for which China is an important market, fell 2.5%, having dropped more than 4% on Tuesday.
Randgold Resources was one of the few risers in the FTSE 100, climbing 0.8%, after the price of gold rose. Shares in Unilever were down 3.5% after Goldman Sachs cut its rating on the consumer goods company to "sell" from "neutral".
Gold is traditionally seen as a safer asset in times of market turmoil, and the spot price of gold hit a three-week high of $1,119.80 an ounce. Randgold Resources was the top riser in the FTSE 100, climbing 2.2%, after the price of gold rose.
On the currency markets, the pound edged up 0.06% against the dollar to $1.5582, but fell 0.4% against the euro to €1.4043. Gold is traditionally seen as a safer asset in times of market turmoil, and the spot price of gold touched a three-week high of $1,119.80 an ounce on Wednesday morning before slipping back.
On the currency markets, the pound fell sharply against the euro after signs of a slowdown in UK wage increases pushed back market expectations of when interest rates might rise.
Latest figures from the Office for National Statistics showed unemployment rose slightly in the three months to June, while earnings growth - including bonuses - slowed to an annual rate of 2.4%.
The pound fell by 0.8%, more than one euro cent, against the euro to €1.3988 but edged up 0.06% against the dollar to $1.5582.