LONDON MARKETS: FTSE Logs Worst Day Since June 2016

Date : 12/06/2018 @ 9:22PM
Source : Dow Jones News
Stock : FTSE 100 (UKX)
Quote : 7459.88  -11.44 (-0.15%) @ 4:35PM
FTSE 100 share price Chart

LONDON MARKETS: FTSE Logs Worst Day Since June 2016

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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.

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 (HSBA.LN) finishing down 3.6% and Lloyds Banking Group PLC (LLOY.LN) down 2.7%.

Oil stocks were under pressure as well, with BP PLC (BP.LN)(BP.LN) and Royal Dutch Shell PLC (RDSA.LN)(RDSA.LN) both closing down 4.5%.

Mining stocks skidded, with Rio Tinto PLC (RIO.LN)(RIO.LN) finishing 3.7% lower, and Glencore (GLEN.LN) closing 5.1% down. BHP Billiton Ltd. (BHP.LN)(BHP.AU) ended 4.4% lower.


(END) Dow Jones Newswires

December 06, 2018 16:07 ET (21:07 GMT)

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