EUROPE MARKETS: European Stocks Slump On Slumping Oil Prices, Fallout From Arrest Of Huawei Executive

Date : 12/06/2018 @ 1:11PM
Source : Dow Jones News
Stock : FTSE 100 (UKX)
Quote : 6721.54  -56.57 (-0.83%) @ 4:35PM
FTSE 100 share price Chart

EUROPE MARKETS: European Stocks Slump On Slumping Oil Prices, Fallout From Arrest Of Huawei Executive

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By Emily Horton

Stoxx Europe 600 drops more than 2%

European stocks were down sharply on Thursday amid slumping oil prices, concerns about global economic growth and the arrest of a high-profile Huawei executive aggravating the resurfaced U.S.-China trade-war fears.

Banking, oil and tech stocks led the decliners.

What are markets doing?

The Stoxx Europe 600 dropped 2.2% to 346.58, after ending down 1.2% on Wednesday.

Germany's DAX 30 skidded 2.5% to 10,924.68, while France's CAC 40 dropped 2.2% to 4,833.07. The U.K.'s FTSE 100 also lost 2.2%, trading at 6,757.74.

Italy's FTSE MIB Italy index slumped 2.4% at 18,858.91.

The euro was essentially unchanged at $1.1349 from $1.1344 late Thursday in New York.The British pound nudged barely higher to $1.2749 from $1.2735.

What is driving the market?

U.S. stock futures tumbled Thursday (http://www.marketwatch.com/story/dow-futures-off-300-points-as-arrest-of-huawei-exec-reignites-trade-worries-2018-12-06) after the arrest of Meng Wanzhou, the chief financial officer of Huawei Technologies, by the Canadian authorities reignited trade worries that helped drag equities to their worst session since early October on Tuesday. Futures selling was so intense at one point Thursday that circuit breakers were triggered.

U.S. markets were closed Wednesday to mourn former U.S. President George H.W. Bush.

Chinese authorities reacted aggressively to the arrest, with the spokesperson of the Chinese Embassy in Canada demanding the release of the Huawei executive (http://www.marketwatch.com/story/china-demands-release-of-huawei-executive-company-denies-any-wrongdoing-2018-12-06).

The latest development have surfaced amid ongoing doubts surrounding the trade deal agreed by the U.S. and China at the G-20 summit at the weekend.

The two-day OPEC meeting starts on Thursday, and oil prices sunk amid no signs yet of a deal to cut production (http://www.marketwatch.com/story/oil-prices-sink-as-saudi-official-signals-no-pact-yet-at-key-opec-gathering-2018-12-06). A flurry of U.S. economic data will provide more insight on the state of the economy. Investors have been spooked by an inversion in the front end of the Treasury yield curve that could signal a slowdown.

What stocks are active?

Heavyweight banking stocks were among the biggest losers on Thursday, with HSBC Holdings PLC (HSBA.LN) (HSBA.LN) and Lloyds Banking Group PLC(LLOY.LN) both falling by 2%.

Tech stocks ell sharply, with Capgemini SE plunging more than 7% (CAP.FR). Steelmaker ArcelorMittal (MT) dropping more than 4%.

Oil stocks were under pressure, with Total SA (TOT) falling 1.9%, BP PLC (BP.LN) is down 2.7% and Royal Dutch Shell PLC (RDSA.LN) dropping 2.5%.

 

(END) Dow Jones Newswires

December 06, 2018 07:56 ET (12:56 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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