U.K. stocks were once again under pressure Thursday, recording their worst one-day percentage decline since late June 2016. Global stocks sold off amid slumping oil prices and escalating worries over U.S.-China trade relations following the arrest of a high-profile Huawei executive.
Oil, mining and banking stocks were particularly under pressure.
What did markets do?
The U.K.’s FTSE 100
UKX, -3.15%
closed down 3.2% at 6,704.05 points, logging its worst one-day percentage drop in nearly 18 months, and its worst point decline since late August 2015.
It was the FTSE’s 11th down day in the past 15 sessions, and a new 52-week low. The index is down 12.8% in the year-to-date.
The British pound
GBPUSD, +0.3926%
firmed to $1.2780 from $1.2735 late Wednesday in New York.
What was driving the market?
The arrest of Meng Wanzhou, chief financial officer of Chinese telecommunications company Huawei Technologies, in Canada by request of the U.S. reignited trade worries, leading U.S. stock futures to tumble on Thursday. Chinese authorities in turn demanded Wanzhou’s release. Huawei said the company wasn’t aware of any wrongdoing by her.
The latest developments have further driven investor doubts over the trade cease-fire agreement reached by the U.S. and China over the weekend at the G-20 summit.
Elsewhere, a two-day OPEC meeting kicked off, and oil prices
CLF9, -2.31%
sunk amid no signs of a deal to cut production during the European trading day. After hours, OPEC agreed a preliminary pact to cut output.
Uncertainty over whether U.K. Prime Minister Theresa May will get her proposed Brexit agreement through parliament on Dec. 11 remains a worry as well.
See: Brexit briefing: London’s mayor proposes that prime minister revoke Brexit notification
Read: Theresa May absorbed three sharp blows Tuesday as steward of U.K.’s Brexit process
What stocks were active?
Heavyweight banking stocks were among the biggest losers on Thursday, with HSBC Holdings PLC
HSBC, -3.62%
finishing down 3.6% and Lloyds Banking Group PLC
LLOY, -2.69%
down 2.7%.
Oil stocks were under pressure as well, with BP PLC
BP., -4.50%
BP, -3.32%
and Royal Dutch Shell PLC
RDSA, -4.45%
RDS.A, -2.49%
both closing down 4.5%.
Mining stocks skidded, with Rio Tinto PLC
RIO, -3.74%
RIO, -2.13%
finishing 3.7% lower, and Glencore
GLEN, -5.11%
closing 5.1% down. BHP Billiton Ltd.
BHP, -4.42%
BHP, -2.20%
ended 4.4% lower.
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Source : MTV
