UPDATE 2-European stocks dive to 2-month lows on China worries

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* STOXX 600 posts biggest 2-day drop since June 2016
* Miners hit as metals prices sink
* HSBC falls on shock CEO change
* Linde rises after second forecast hike this year

(Updates to close)
By Susan Mathew
Aug 5 (Reuters) - European shares sank to a two-month low on
Monday as a global sell-off spurred by trade tensions deepened,
sending China's yuan to its lowest in more than a decade and
sinking trade-sensitive mining, luxury and technology stocks.
The pan-European STOXX 600 index .STOXX fell 2.3%, which,
taking into account Friday's losses, made for the biggest
two-day drop in more than three years as traders dumped shares
in favour of perceived safe-havens like government bonds.
Mining groups Rio Tinto RIO.L and BHP BHPB.L fell more
than 2%, while steel producer ArcelorMittal MT.AS lost more
than 4% as Beijing allowed the yuan CNY=CFXS to breach
7-per-dollar, making copper and iron more expensive in their
biggest global market. IRONORE/ MET/L
The commodities-linked stocks index .SXPP fell 2.9% to its
lowest in seven months.
The yuan's move on Monday was viewed as a clear sign China
would not back down in the face of President Trump's threat of
new tariffs on imports, meaning the trade conflict may get
worse. Trump himself called the move "currency manipulation" and
a "major violation". "Today's move puts added pressure on the equity markets
globally because obviously ... China is not giving in, China is
fighting back," said Andre Bakhos, Managing Director at
U.S.-based New Vines Capital. "Nobody likes this uncertainty."
Trump's threat last week to slap 10% tariffs on another $300
billion in Chinese imports, plus disappointment about the U.S.
Federal Reserve's rhetoric, have halted what had been a steady
recovery for stock markets since a sell-off in May.
Luxury stocks such as Louis Vuitton owner LVMH LVMH.PA and
watchmakers Richemont CFR.S and Swatch UHR.S , which derive a
large part of their revenue from China, gave up between 3.9% and
6.8%, pushing the personal and household goods index .SXQP
down 3.5% - the most among major sectors.
Software company SAP SAPG.DE was among the biggest
decliners on the STOXX 600, while chipmakers AMS AMS.S ,
Infineon IFXGn.DE and STMicroelectronic STM.MI also fell.
Asia-focused bank HSBC HSBA.L was also one of the biggest
drags on the main index, down 3%, after it announced the
departure of Chief Executive Officer John Flint, a shock move
aimed at speeding up progress on priority areas such as the
turnaround of its U.S. business. Gas producer Linde LIN.N rose 2.5% and was the biggest
boost for the STOXX 600 after quarterly results topped forecasts
and underpinned a second increase to full-year forecasts this
year.