European shares set for biggest weekly fall in 6 weeks

European stocks were still poised for their worst week in four, though, after China’s surprise currency devaluation on Tuesday.

For the week, the MSCI All World Index fell 0.4 percent, its second consecutive weekly decline.

U.S. stock futures indicated a 0.2% opening loss for the S&P 500.

Crude oil futures remained under pressure, plunging to 6-1/2-year lows after data revealed a big rise in U.S. stockpiles, fuelling fears of a growing global glut. Hong Kong fell 0.13 percent, or 27.77 points, to end the day at 23,991.03.

The Dow Jones industrial average rose 69.15 points, or 0.40 percent, to 17,477.40. Australia’s S&P/ASX 200 advanced 0.1 percent to 5,387.90. Oil slumped to its lowest since March 2009 and emerging market currencies – notably the Turkish lira and South African rand – slid to historical lows.

The People’s Bank of China set its midpoint yuan rate at 6.3975 per dollar before the market opened on Friday, slightly higher than the previous day’s close of 6.3990.

“The formed area of the devaluation looks like over, but because business military are supposed to make use of the an increasing role, the yuan could coast lower”, state observers at Brown Brothers Harriman.

Greek lawmakers finally voted through the country’s third worldwide bailout early Friday after a bitter all-night debate, but it gave no boost to Athens stocks which closed down 1.85 per cent. Prime Minister Alexis Tsipras still faces a confidence vote later this month.

On Friday China’s central bank slightly raised the value of the yuan against the US dollar, but investor response was tempered by speculation that further depreciations may be ahead as Beijing struggles to revive the slowing Chinese economy. The FTSEurofirst 300 index of leading European shares was down 0.1 percent.

Economic growth in the euro zone slowed in the second quarter as France stagnated and Italy lost momentum, held back by an uncertain global outlook that is even weakening investment in powerhouse Germany.

West Texas Intermediate oil fell 31 cents to $41.90 a barrel, heading for the longest run of weekly declines since January. Ore with 62 percent content delivered to Qingdao, another Chinese port and a benchmark price, climbed to the highest in more than six weeks on Thursday, adding 1.3 percent to $57.02 a dry ton, according to Metal Bulletin. But strong U.S. retail sales data on Thursday backed the view that the Fed was ready to hike. The onshore spot rate was little changed at 6.3912 per dollar, after falling nearly 3 percent this week.