BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks were sharply lower on Wednesday amid fears the U.S.-China trade dispute could go on for longer than anticipated.
Investors remain worried about a prolonged trade war and its impact on global growth after Chinese newspapers warned that Beijing is ready to use rare earths to strike back in a trade war with the United States.
In another development, Huawei Technologies Co Ltd has filed a motion for summary judgment in its lawsuit against the U.S. government.
'The U.S. government has provided no evidence to show that Huawei is a security threat. There is no gun, no smoke. Only speculation,' the company's chief legal officer Song Liuping said in a statement.
The benchmark FTSE 100 was down 105 points or 1.45 percent at 7,164 after closing 0.1 percent lower the previous day.
Mining stocks fell as investors monitored trade headlines. Anglo American, Antofagasta and Glencore lost 2-3 percent.
Marks and Spencer Group slumped 4.4 percent on fears it could be removed from the FTSE 100 next week.
Stobart Group shares jumped 12.4 percent. The aviation and energy group said it was confident about the outlook for the New Year as it ramps up investment in expanding its London Southend Airport after de-risking the balance sheet through disposals.
The pound held near a four-month low against the euro amid extended uncertainty over Brexit.
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