(MENAFN- ProactiveInvestors)London's blue chip stocks dived shortly after the US markets opened as China's second currency devaluation in two days battered shares. Connor Campbell at spread-betting firm Spreadex said: 'The US open only helped intensify the sell-off this afternoon with the yuan devaluation continuing to suffocate the markets as China cemented its position as the new market bogeyman the seat still warm from Greece's tenure.' The currency hit four-year lows after a raft of downbeat data including another slowdown in industrial production expansion to 6%. David Rees at Capital Economics said: 'A second reduction in the renminbi's reference rate against the dollar today has reinforced fears that China is readying itself for a currency war and/or that its economy is running off a cliff.' Markets across Europe were affected with the French Cac40 losing 3.4% to 4925 while the German Dax shed 3.2% to 10933. The FTSE 100's losses seem less drastic easing 1.4% or 93 points to 6541 after a last minute spike softened the blow. Miners took a hit on fears of lower demand for metals. Glencore (LON:GLEN) reversed 11p to 180p BHP Billiton (LON:BLT) subsided 6p to 1143p and Anglo American (LON:AAL) declined 7p to 768p. Meanwhile disappointing UK job data failed to buoy sentiment with unemployment rising for the second month in a row. Samuel Tombs at Capital Economics said: 'All indicators suggest that the rate at which slack in the labour market is been used up has eased significantly indicating that the economic recovery is now being largely fuelled by productivity not employment growth.' In corporate news publisher Pearson (LON:PSON) dropped 5p to 1168p following the sale of its stake in The Economist magazine for £469mln. Sticking on the FTSE 100 security group G4S (LON:GFS) rose 1.5p to 268p after it reported an upbeat first-half report. The underlying picture was a reasonably reassuring one with first-half revenues and profits ahead (albeit marginally) and in line with forecasts. Away from the index Centamin (LON:CEY) reported its pre-tax profit rose in the first half of 2015 leading the company to hike its interim dividend by 11%. Shares climbed almost 7% to 58p. In small caps African Potash (LON:AFPO) was on the rise again after its non-executive directors agreed to accept shares in lieu of cash for services rendered thus far this year. Shares climbed 21% to 0.84p. Meanwhile Kibo Mining (LON:KIBO) said a second phase study for the coal mine at its Mbeya thermal power project in Tanzania has improved on the original concept in key areas. Shares were 13.2% higher to 4.67p. Conversely Tribal Health (LON:TRB) struggled after it reported that adjusted profit before tax more than halved to £2.0mln in the first half of 2015. Shares dropped 9.6% to 146p.
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