Initial Impact: FTSE 100 Falls as China Devaluation Hits Burberry, Mining Stocks

Economy
11/08/2015 11:25

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 after a run of poor economic data. Burberry was the top faller in early trading, losing 2.2%. "A weaker yuan makes imports more expensive and with China accounting for some 14% of the company's sales, the implication is clear," said analyst Tony Cross. Mining groups BHP Billiton, Glencore, Antofagasta and Rio Tinto were down 1.5 to 2.1%. Copper fell 1.5% after the move by China, the world's biggest consumer of metals - and now the second largest consumer of polished diamonds.