UK shares have fallen sharply in morning buying and selling, dragging the FTSE 100 index to its lowest stage since December 2016.
Each London and main European markets have been down greater than 2% as a sell-off that began in Asia gathered tempo.
Worst-hit sectors included miners, oil corporations, carmakers and tech shares.
Analysts stated the arrest of Chinese language telecoms big Huawei’s chief monetary officer in Canada had revived worries over US-China commerce tensions.
By mid-morning, London’s 100-share index was down 2.6% at 6,744 factors, whereas the Cac-40 in Paris and Frankfurt’s Dax have been each 2.4% decrease.
Among the many largest fallers in London have been mining corporations Antofagasta, down 5.8%, and Glencore, which fell 4.9%.
Earlier, Asian markets additionally sank, with Tokyo’s Nikkei shedding 1.9% and the Dangle Seng in Hong Kong falling 2.5%.
“Traders are again in risk-off mode, with markets falling within the UK, mainland Europe and throughout Asia,” stated Russ Mould, funding director at AJ Bell.
“Markets are fearful by quite a few issues: international financial progress, rising rates of interest and the US-China commerce struggle.”
Oil costs additionally dived. Brent Crude was buying and selling nearly 5% decrease, taking it under $59 a barrel.
Merchants are looking ahead to information from the assembly of Opec oil-producing nations in Vienna, with some member states eager to agree on a manufacturing reduce to drive up costs.
“We’re in search of a ample reduce to stability the market, equally distributed between international locations,” stated Saudi Arabia’s oil minister, Khalid al-Falih, earlier than the assembly.