The UK benchmark index has fallen deep into the red in today’s session, pressured by renewed worries over the US-China trade relations following the arrest of a Huawei executive in Canada. In individual movers, DS Smith (LON:SMDS) has been one of the session’s biggest fallers after updating investors on its half-year performance.
FTSE 100 tumbles
As of 12:44 GMT, the FTSE 100 had given up 152.22 points to stand 2.20 percent lower at 6,769.62. Investors have shunned equities amid worries over the US-China trade relations after it emerged that Canadian authorities had arrested a top Huawei executive.
“The latest bout of anxiety stems from the arrest and planned extradition from Canada to the US of the CFO (and founder’s daughter) of Chinese telecom giant Huawei, on allegations of breaching Iran sanctions and suspicions of cyber-espionage,” commented Mike van Dulken and Artjom Hatsaturjants at Accendo Markets, as quoted by Proactive Investors. “Having swung between optimism and scepticism about a US-China trade war truce through February […] traders are understandably cautious.”
Reuters meanwhile quoted Ian Williams, analyst at Peel Hunt, as saying that investors were “in the mood to accentuate all the negative news at the moment”.
DS Smith has been one of today’s most notable fallers despite reporting a rise in revenues and profit for the first half of its financial years. DS Smith’s share price currently stands 3.74 percent lower at 314.10p.
Royal Mail Group (LON:RMG), which has lost its spot in the FTSE 100 index, is outperforming the broader London market, with the postal operator’s currently trading 0.68 percent higher at 305.30p.
The FTSE 100 was 2.44 percent down at 6,752.97 points as of 13:07 GMT on Thursday, 06 December 2018.