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(Alliance News) - London's FTSE 100 picked up from morning lows on Monday and even edged into the green in afternoon trade, but still closed lower as dramatic Covid-related developments in China soured the mood at the start of the week.
The FTSE 100 index closed down 12.65 points, or 0.2% at 7,474.02 on Monday. The FTSE 250 slumped 253.35 points, 1.3%, at 19,292.35. However, the AIM All-Share closed up 3.85 points, or 0.5%, at 850.92.
The Cboe UK 100 ended down 0.1% at 748.27, the Cboe UK 250 closed down 1.1% at 16,726.11, and the Cboe Small Companies ended up 0.4% at 13,025.57.
In European equities on Monday, the CAC 40 in Paris ended down 0.7%, while the DAX 40 in Frankfurt closed 1.1% lower.
In New York, the Dow Jones Industrial Average was down 0.8% at the time of the London equities market close. The S&P 500 was 0.9% lower, while the Nasdaq Composite shed 0.8%.
The pound was quoted at USD1.2025 at late Monday in London, down from USD1.2090 at the London equities close on Friday. The euro stood at USD1.0377, down against USD1.0395 late Friday. Against the yen, the dollar was trading at JPY138.89, down from JPY139.22.
"With the rest of the world enjoying life and learning to live with Covid, China continues to double down on a strategy that has little chance of success without an accompanying vaccine programme," CMC Markets analyst Michael Hewson commented.
"With infections surging and more covid controls being implemented, protests have rippled out across the country after a building fire in Xinjiang killed 10 people with residents claiming that covid controls had prevented a swifter response by emergency services."
Chinese security forces on Monday filled the streets of Beijing and Shanghai following online calls for another night of protests to demand political freedoms and an end to Covid lockdowns.
People have taken to the streets in major cities and gathered at university campuses across China in a wave of nationwide protests not seen since pro-democracy rallies in 1989 were crushed.
Continuing Covid-19 related fears in China hit oil prices. On Monday, the number of new daily cases rose to 40,347, including 36,525 with no symptoms.
Brent oil was quoted at USD82.84 a barrel late Monday, down sharply from USD85.21 late Friday.
Shares in Shell and BP tracked the Brent price lower, ending down 0.3% and 1.0%.
Also succumbing to China-related worries were shares in Asia-focused lender HSBC, which lost 0.7%.
Over in New York, Apple shares were down 2.1%, as the consumer electronics maker is heavily-exposed to the ebbs and flows of the Chinese economy. In addition, there are concerns about production of its iPhones, with a key factory in China also coming under the cross-hairs of protests.
Back in London, BT fell 2.4% after the telecommunications firm announced plans for a pay rise to all but its highest-paid staff, in a move aimed at resolving a long-running dispute which has led to strikes.
Talks with the Communication Workers Union and Prospect have led to both unions recommending agreement.
Workers will be balloted on the offer, which the CWU said represented a pay rise ranging from 6% to 16% for workers of different grades.
Dr Martens shares fell for the fourth day in-a-row. The boot maker lost 7.0% on Monday and has given back some 33% during the current losing streak. Dr Martens on Thursday had warned on margins.
Home REIT also extended losses, falling 7.0%. The FTSE 250-listed real estate investment trust last week Wednesday hit out at an "inaccurate and misleading" report from a short-seller.
Shares in Home REIT are down around 25% since the start of last week.
Superdry slumped 17%. The clothing retailer confirmed it is in talks with a US hedge fund, as the business faces an uncertain future if it cannot secure a new lender.
Superdry last month said there was a "material uncertainty" over the future of its business as a GBP70 million loan facility is set to expire in January.
Superdry confirmed a report in the Telegraph newspaper that it is trying to secure funding from Bantry Bay Capital, which is backed by US activist investor Elliott Advisors.
On AIM, Windar Photonics soared 88% as its shares resumed trading following the publication of both of its full-year and interim results.
The results, released on Friday, showed that the wind sensor developer for wind turbines narrowed its pretax loss in the six months ended June 30 to EUR880,317 from EUR962,340 the previous year.
Its revenue in the period rose to EUR420,555 from EUR305,991. The majority of this revenue was realised in June, it said, when initial deliveries to Vestas Service North America "finally" began.
Gold fetched USD1,743.16 an ounce at the time of the London equities close on Monday, down from USD1,750.96.
Tuesday's economic calendar has a German inflation reading at 1300 GMT. Retail sales figures from Japan are released overnight.
The local corporate calendar has annual results from budget airline easyJet and a trading statement from international money transfer services provider Wise.
By Eric Cunha; ericcunha@alliancenews.com
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