European shares set for biggest weekly fall

London - European stocks steadied on Friday to consolidate a rebound in the previous session, although they remained set for their biggest weekly loss in six weeks following moves by China to let its currency weaken.

The pan-European FTSEurofirst 300 was flat at 1530.30 points by 09:04.

After devaluing the yuan earlier in the week, China's central bank said on Thursday there was no reason for the currency to fall further given the country's strong economic fundamentals, helping to restore calm to jittery global markets.

Those reassurances helped the pan-European FTSEurofirst 300 end up 0.9% on Thursday. However, it remains down 2.8% for the week, its biggest weekly fall since the end of June, after the initial moves by China to allow the yuan to weaken hit mining, auto and luxury stocks.

Among top sectoral fallers on Friday, oil and gas firms dropped 0.5% after US crude oil fell below $42 a barrell to prices not seen since March 2009.