MARKET REPORT

A STOCK market bloodbath saw £56bn wiped off the FTSE 100 yesterday as fears that the arrest of a senior Huawei official in Canada could reignite tension between the US and China. London’s blue-chip index closed 217.79 points, or 3.2% lower, at 6,704.05.

Huawei’s chief financial officer Meng Wanzhou, faces possible extradition to the US after her arrest on suspicion of trying to evade sanctions against Iran. A Chinese government statement said Meng broke no US or Canadian laws and demanded Canada “immediately correct the mistake” and release her.

Sterling traded relatively flat against both the dollar and euro at 1.277 and 1.123 respectively as Brexit fears kept the British currency shackled.

In corporate news, has reported a dip in third-quarter sales and confirmed that Herbert Smith Freehills will investigate harassment allegations levelled at chief executive Ray Kelvin. The under-fire retailer said the law firm will carry out an “independent external investigation” after a petition called on the fashion brand to “end harassment”. Ted Baker shares closed 44p, or 3%, higher at 1,511p.

Insurance firm has warned that it will take a $40m (£31.4m) hit from claims linked to wildfires in California. More than 50,000 people in the West Coast state were forced to flee wind-driven flames in November that burned 240 square miles. Beazley shares fell 25p, or 4.6%, to 517.5p.

Meanwhile,

(RBS) is to shift £13bn worth of business to the Netherlands if the UK crashes out of the EU with no deal. About 30% of the customers for its investment banking unit, NatWest Markets, will move to the lender’s new Dutch subsidiary as well as existing transactions by March 4 in the event of a disorderly Brexit. RBS shares declined 10p, or 4.5%, to 212p.

The biggest risers on the FTSE 100 were were up 174p to 6,556p, up 8.4p to 783p, and up 1p to 1,853.5p.

The biggest fallers were down 57.80p to 760p,

94.50p to 1,410p,

152p to 2,357p, and

down 9.85p to 156.5p. down down