Stock markets around the world fell sharply Thursday, with the arrest of a high-profile Chinese executive in Canada rattling hopes for thawing US-China trade relations, while energy prices resumed their steep drops.

Europe’s Stoxx 600 index fell 2.3% in morning trading, with the benchmark’s technology and basic-resources sectors both sliding more than 3%. Shares in European oil-and-gas companies slumped as the fall in energy prices accelerated.