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EUROPEAN SHARES SET TO FALL AFTER HUAWEI CFO ARREST (0628 GMT)
The big news overnight was the arrest of Huawei’s CFO (and daughter of the Chinese tech giant’s founder) and that has already rocked equities in Asia on fears that tensions in the trade war between Washington and Beijing could flare up again.
The selling pressure is set to continue in Europe with main stock benchmarks called down more than 1 percent, while U.S. stock index futures were also lower.
“The timing of the arrest is key here,” says Jasper Lawler, Head of Research at London Capital Group.
“The arrest has the potential to shatter very fragile US – Sino relations which will weigh further on global trade and growth concerns. It looks as though, despite recent heavy sell-offs, the bottom is not in sight and the markets have further to fall. The big swings of late are representative of a very jittery market,” he adds.