India, Dec. 6 -- The Canadian stock market is down sharply in early trade Thursday, reversing the gains of the previous session. Continued skepticism about the potential for a long-term trade agreement between the U.S. and China has negatively impacted sentiment following the arrest of a top executive at Chinese tech giant Huawei.

Huawei CFO Meng Wanzhou was arrested in Canada on suspicion of violating U.S. trade sanctions against Iran and faces possible extradition to the U.S.

The development has added to uncertainty about whether the 90-day trade truce negotiated by President Donald Trump and Chinese President Xi Jinping will give the two sides enough time to reach a long-term deal.

Markets in Europe are tumbling further Thursday, addi...