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European stocks stumble as euro extends gains

Germany’s Dax has hit a three-month low and France’s CAC 40 is flirting with its lowest level since April, as the euro held on to gains against the dollar.

Every stock except Deutsche Bank and Adidas – which upgraded its full-year profit forecasts for the second time this year earlier today – is falling on the Dax, and the overall index is down 0.8 per cent – its lowest level in three months.

The broader Eurostoxx 50 index is down 1.2 per cent, while France’s CAC 40 is sliding 1.4 per cent, with Sodexo, Carrefour, and Danone leading the downward charge.

The euro has continued its bull run this week after ECB president Mario Draghi decided not to push back on its recent rally. At pixel time it was up 0.3 per cent at $1.17.

A stronger currency makes exports less competitive as they become relatively more expensive for overseas purchasers. While European stocks are less exposed to currency movements than UK companies, around half the sales from Europe’s top companies come from exports.