Investing.com - European stocks were lower on Tuesday, after China devalued its currency by the most in two decades and as investors were eyeing economic sentiment data from Germany due later in the day.
During European morning trade, the EURO STOXX 50 slid 0.56%, France’s CAC 40 declined 0.65%, while Germany’s DAX 30 retreated 0.68%.
Equity markets were hit after China’s central bank cut its daily reference rate for the yuan by a record 1.9%,ending a de facto peg to the dollar that had been in place since March.
Meanwhile, a Greek official said early Tuesday that his government had completed talks with creditors over a deal setting out the terms of a third bailout, with some details remaining.
Financial stocks were broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) slid 0.12% and 0.50%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) fell 0.10% and 0.23%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) lost 0.35%. Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) overperformed on the other hand, with shares adding 0.05% and 0.13% respectively.
Elsewhere, Adecco (SIX:ADEN) SA saw shares plunge 3.28% after the Swiss human resources company posted quarterly net income below estimates.
On the upside, Konecranes Oyj (HEL:KCR1V) skyrocketed 21.20% after Terex Corp. agreed to merge with the Finnish construction-equipment company.
In London, commodity-heavy FTSE 100 dropped 0.50%, weighed by sharp losses in the mining sector.
Shares in Rio Tinto (LONDON:RIO) and Antofagasta (LONDON:ANTO) plummeted 2.25% and 2.40%, while rivals Glencore (LONDON:GLEN) and Bhp Billiton (LONDON:BLT) lost 2.42% and 3.14% respectively.
Financial stocks were also broadly lower, as the Royal Bank of Scotland (LONDON:RBS) edged down 0.12% and Lloyds Banking (LONDON:LLOY) slipped 0.17%, while Barclays (LONDON:BARC) declined 0.43% and HSBC Holdings (LONDON:HSBA) retreated 0.81%.
Meanwhile, software designer ARM Holdings (LONDON:ARM) led gains on the index, with shares up 0.50%, after the stock was given a consensus recommendation of "buy" by the 29 ratings firms that are covering the company.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.40% drop, S&P 500 futures signaled a 0.37% loss, while the Nasdaq 100 futures indicated a 0.01% dip.