Home Business Imprisonment of Chinese CFO Threatens Truce With US, Drops Stocks and Commodities

Imprisonment of Chinese CFO Threatens Truce With US, Drops Stocks and Commodities



The truce in the commercial war announced by Donald Trump and Xi Jinping last weekend was threatened on Thursday with the announcement of the arrest of the daughter of the founder of Chinese technology giant Huawei. Meng Wanzhou is the company’s CFO and was arrested in Canada at the request of the United States, and her arrest would be related to violation of some US sanctions. Technology and intellectual property have been at the center of discussions since the start of the trade war between the two countries.

The news has shaken financial markets globally, and in the United States, especially, stock indexes are plummeting. Commodities are accompanying the casualties. The Nasdaq 100 loses more than 3.7% and the Dow 300, more than 3%. Among the commodities, the most intense casualties were marked by oil, which fell by more than 3% in both London and New York. Natural gas fell by more than 2%.

Copper and silver lost more than 1% in copper, while the cotton and sugar futures in New York lost between 1.18% and 1.27%. At the Chicago Stock Exchange, grains worked at more modest losses, but led by soybeans, which subsided at around 11:00 AM (0.53%).

On the contrary and responding to the high aversion to risk this morning of Thursday after the news of the arrest, the dollar rises against a basket of major currencies, including the real. The US currency was up 1.03% and was already worth R $ 3.90.

Meng’s arrest came on the same day as the G20 meeting ended last weekend, but the news was released today, according to information from international agencies. China reacted with indignation to the fact and called on the countries involved to move to free it as soon as possible.