European stocks rebounds from 2-month low as China curbs yuan's drop

The European stocks opened higher today, to head to first gain in the last three sessions, rebounding from 2-month low, which comes after the release of Germany's factory orders data and after China took quick measures to limit yuan's sharp drop.

As of 11:02 GMT, Stoxx Europe 600 rose by 0.6% after it ended yesterday lower by 2.3%, in the second straight daily loss, hitting a 2-month low as the US-China trade war escalated.

The index shed 4.8% during the last two sessions, which is the biggest drop in 2 days in more than three years, as the high-yielding asset sell-off accelerate in the markets.

The Index rose today to head for first gain in the last three sessions, with most of Europe's sectors and markets in green.

German data showed today that new factory orders rose by 2.5% in June, higher than forecasts of 0.5%, as it fell by 2.0% in May.

The People's Bank of China denied today US allegations of currency manipulation and set yuan's exchange rate at $6.9683 the 7 mark, after it fell below yesterday for the first time since the global financial crisis in 2008.

China offered today yuan-denominated bonds in Hong Kong, which indicates short-selling of the currency.

S&P 500 futures rose more than 1.5%, rebounding from 2-month low, while the index closed yesterday lower by about 3%, its sixth daily loss, after yuan's sharp drop.

In Europe, Euro Stoxx 50 rose 0.7%, with the French, CAC 40 rising by 0.9% to top the gainers list in Europe. while in Germany, the DAX rose more than 0.5%, and in London, FTSE 100 rose 0.1%.