Trade war concerns hit market as FTSE slides

Britain’s benchmark FTSE 100 index plunged deeper into the red yesterday as fears grew over a fresh trade spat between the US and China.

The arrest of a senior Huawei official in Canada stoked tensions with the Footsie shedding 217.79 points or 3.2 per cent to 6,704.05.

Huawei’s chief financial officer (CFO), Meng Wanzhou, faces possible extradition to the US after her arrest on suspicion of trying to evade sanctions against Iran. Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “The arrest of Huawei’s CFO has reignited fears that trade reconciliation between the US and China may not be forthcoming any time soon.

“The market is spooked by the damage a continuing trade war could do to global economic prospects, and that’s hitting share prices in the UK and overseas. The FTSE 100 now sits below where it stood at the turn of the century.”