The FTSE 100 joined European stock markets plunging deep into the red on Thursday as fears that the arrest of a senior Huawei official in Canada could reignite tension between the US an
By Ravender Sembhy, Press Association City Editor
December 6 2018 12:26 PM
The FTSE 100 joined European stock markets plunging deep into the red on Thursday as fears that the arrest of a senior Huawei official in Canada could reignite tension between the US and China.
London’s top flight was trading down 151 points, or 2.18%, at 6,770.9 in mid-day trade, a two-year low.
Huawei’s chief financial officer, Meng Wanzhou, faces possible extradition to the United States after her arrest on suspicion of trying to evade sanctions against Iran.
A Chinese government statement said Meng broke no US or Canadian laws and demanded Canada “immediately correct the mistake” and release her.
”China has, obviously, been quick to criticise the arrest while Huawei is demanding her release. It is yet another huge blow to what was already looking like a fragile and inchoate ceasefire, and has sent the markets into another value-eroding funk,” said Connor Campbell of SpreadEx.
Melrose Industries, Antofagasta and Prudential were among the biggest casualties in the ensuing stock market fallout, with each of their shares shedding over 6%.
Sterling was trading flat against both the US dollar and euro at 1.
