Fears about China's economy have kept markets under pressure again ahead of minutes from last month's U.S. Federal Reserve meeting. As Sonia Legg reports European stocks fell after a rollercoaster day in Asia.
It was the worst performer in early trade on the FTSE Eurofirst 300. Carlsberg shares fell 8 percent after the world's fourth largest brewer cut its profit outlook for the year. Cold weather in Northern Europe and a market decline in Eastern Europe were responsible for the poor second quarter . And that promted a new strategy promise from the CEO. Other European stocks were again hit by the chill wind from China. The impact of last week's currency devaluation the problem - rather than the prospect of another cut. Jane Foley is Senior FX strategist at Rabobank. (SOUNDBITE) (English) JANE FOLEY, SENIOR FX STRATEGIST AT RABOBANK, SAYING: "With the market forces coming through it's very likely we will see further depreciation over time of the Chinese economy that of course is very different to a devaluation so I don't think we are going to get a devaluation but I do think we will be depreciation." It was a roller coaster ride for China's stocks. Down almost 8 percent then up again - finishing 1 percent above the previous session after state-backed buyers rushed in. Many see the bumpy ride continuing. And even a steady U.S. was watching carefully as traders awaited minutes from last month's Federal Reserve meeting for any hints on its rate hike plans. (SOUNDBITE) (English) JANE FOLEY, SENIOR FX STRATEGIST AT RABOBANK, SAYING: "Less investment in emerging markets means less growth and therefore this does have a negative effect on global growth which will feed back into the global economy which will feed back into the U.S. economy." New fears of a currency war have again emerged thanks to the devaluation of the yuan. Vietnam devalued the dong for the third time this year on Wednesday. It followed recent currency falls in Australia, New Zealand, Singapore and Taiwan.