(Alliance News) - Stocks in London are set to open lower on Monday, amid risk-off sentiment globally, following anti-lockdown protests across several major cities in China.
IG says futures indicate the FTSE 100 index of large-caps to open down 36.07 points, or 0.5% at 7,450.60 on Monday. The FTSE 100 index closed up 20.07 points, or 0.3% at 7,486.67 on Friday
Sunday saw people take to the streets in several major cities across China to call for an end to lockdowns and greater political freedoms, in a wave of nationwide protests not seen since pro-democracy rallies in 1989 were crushed.
A deadly fire last week in Urumqi, the capital of northwest China's Xinjiang region, has become a catalyst for public anger, with many blaming Covid lockdowns for hampering rescue efforts.
But they have also featured prominent calls for greater political freedoms – with some even demanding the resignation of China's President Xi Jinping, recently re-appointed to an unprecedented third term as the country's leader.
In China on Monday, the Shanghai Composite was down 0.9%, while the Hang Seng index in Hong Kong was down 1.8%.
"Sentiment has turned sour as unrest across China grows...The best scenario is further easing and reopening, but the speed at how things deteriorated over the weekend suggests the government needs to act fast. The risk of the situation escalating from here, and short-term volatility remains high," said Stephen Innes at SPI Asset Management.
In Tokyo, the Japanese Nikkei 225 index was down 0.4%. The S&P/ASX 200 in Sydney also was down 0.4%.
Brent oil was trading at USD81.43 a barrel early on Monday, down sharply from USD85.21 late Friday.
"Crude and Brent oil prices continue to struggle on the first trading day of the week as investors are apprehensive about the Covid-related issues that are emerging in China. Basically, it is demand that is creating the main issue for the price, and the fact that we have a potential recession threat and now the Covid issues in China. Things are becoming difficult for oil traders," explained Naeem Aslam at AvaTrade.
Gold was quoted at USD1,751.46 an ounce early Monday, slightly higher than USD1,750.96 on Friday.
The euro traded at USD1.0359 early Monday, down from USD1.0395 late Friday. Against the yen, the dollar was quoted at JPY138.33, lower versus JPY139.22.
Sterling was quoted at USD1.2057 early on Monday, lower against USD1.2090 at the London equities close on Friday.
UK homes have been selling for 3% below their asking price typically in recent weeks, according to Zoopla.
For much of 2021 and the first half of 2022, the average discount that homes were selling for was 0%, it said, meaning that properties were typically achieving their asking price.
The property website said it expects discounts to increase further in 2023.
In Monday's corporate calendar for London, there are half-year results from real estate investment trust Home REIT and building materials firm Brickability.
By Heather Rydings; heatherrydings@alliancenews.com
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