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.
Italy’s FTSE MIB Italy index
slumped 2.4% at 18,858.91.
What is driving the market?
U.S. stock futures tumbled Thursday 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.
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. 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?
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