(Alliance News) - Stock prices in London are seen opening slightly higher on Monday following a higher close in New York on Friday, while the final easing of UK lockdown restrictions looks set to be delayed by four weeks.
IG futures indicate the FTSE 100 index is to open 19.84 points higher at 7,153.90. The blue-chip index closed up 45.88 points, or 0.7%, at 7,134.06 on Friday.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up marginally, S&P 500 up 0.2% and Nasdaq Composite up 0.4%.
The Japanese Nikkei 225 index was up 0.6%. Financial markets on Monday were closed in Hong Kong and Shanghai for the Dragon Boat Festival holiday. In Sydney, the Australian Securities Exchange was closed for the Queen's Birthday holiday.
"This morning's Asia session has been a subdued affair, due to public holidays in China and Australia, with markets here in Europe set to continue their slow drift higher as we start a new week," said CMC Markets analyst Michael Hewson.
"The overriding impression from the last few days' events appears to be that bond markets and investors in general appear to be buying the central bank narrative that the current high levels of inflation are transitory and will soon pass," Hewson added.
UK Prime Minister Boris Johnson is facing a furious backlash from Tory MPs as he prepares to put the final lifting of coronavirus lockdown restrictions in England on hold.
Johnson is expected to announce the ending of social-distancing rules - which had been slated for June 21 - will be delayed for four weeks to July 19, with the BBC reporting early on Monday the decision had been signed off by senior ministers.
The move follows warnings from scientists that the rapid spread of the delta variant first identified in India risks a "substantial" third wave if it is allowed to spread unchecked.
Johnson is expected to appeal to the public to show patience, with one last push to ensure that when controls do finally end it is "irreversible".
However, it comes as a huge setback to many businesses - particularly in the battered hospitality sector - which had pinned their hopes on a full summer reopening to recoup some of the losses of the past year.
There was deep frustration among lockdown sceptics on the Conservative benches who said there was no reason not to end the restrictions as those most at risk of death or serious illness are now fully vaccinated.
Former minister Mark Harper, the chair of the Covid Recovery Group of Tory MPs, said any postponement would be a "political choice". He warned that if the unlocking did not go ahead as planned, restrictions could carry on through the autumn and into the winter as other respiratory infections picked up.
Elsewhere, China on Monday accused the G7 of "political manipulation" after it criticised Beijing over its human rights record in Xinjiang and Hong Kong.
In a communique after a three-day summit in England, G7 leaders slammed China over abuses against minorities in the Xinjiang region and pro-democracy activists in Hong Kong, while US President Joe Biden called for Beijing to "start acting more responsibly in terms of international norms on human rights".
The Chinese embassy in the UK responded angrily on Monday, and accused the G7 of "interfering".
The pound was quoted at USD1.4109 early Monday, marginally higher from USD1.4105 at the London equities close Friday.
The euro was priced at USD.2102, up from USD1.2096. Against the Japanese yen, the dollar was trading at JPY109.74, slightly lower from JPY109.80.
Brent oil was quoted at USD73.02 a barrel Monday morning, higher than USD72.85 late Friday. Gold was trading at USD1,865.00 an ounce, little changed from USD1,894.00.
The economic events calendar on Monday has eurozone industrial production at 1000 BST.
The UK corporate calendar on Monday has annual results from fashion retailer Ted Baker and a trading statement from recruiter SThree.
Ahead in the economic events calendar this week, there are interest rate decisions from the US Federal Reserve on Wednesday and Bank of Japan on Friday. There are also UK unemployment and inflation figures on Tuesday and Wednesday respectively.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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