LONDON MARKETS: FTSE Logs Worst Day Since June 2016
By Anneken Tappe, MarketWatch , Emily Horton
Mining, oil and banking stocks drop
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 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 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 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.
What stocks were active?