Stocks called down ahead of Fed and BoE

(Alliance News) - Stocks in London are set to open lower on Monday, ahead of an important week of interest rate decisions.

Meanwhile oil prices have spiked amid the latest escalations in the Middle East.

IG says futures indicate the FTSE 100 to open down 11.4 points, 0.2%, at 7,623.69 on Monday. The index of London large-caps closed up 105.36 points, 1.4%, at 7,635.09 on Friday.

The economic calendar for this week has the US Federal Reserve announcing its latest interest rate decision on Wednesday at 1900 GMT, followed by the Bank of England on Thursday at 1200 GMT. Both central banks are expected to keep rates on hold.

Sterling was quoted at USD1.2706 early Monday, lower than USD1.2721 at the London equities close on Friday. The euro traded at USD1.0845 early Monday, lower than USD1.0866 late Friday. Against the yen, the dollar was quoted at JPY147.92, unchanged versus Friday.

The price of oil jumped on Monday morning, amid rising tensions in the red sea. Brent oil was trading at USD83.22 a barrel early Monday, higher than USD81.36 late Friday.

A drone attack on a base in Jordan killed three American troops and wounded more than 30 on Sunday, with President Joe Biden blaming Iran-backed militants and vowing to hold the perpetrators to account.

It is the first time American military personnel have been killed by hostile fire in the Middle East since the war between Israel and Iran-backed Hamas began, and the incident will further raise tensions in the region and add to fears of a broader conflict directly involving Tehran.

"While we are still gathering the facts of this attack, we know it was carried out by radical Iran-backed militant groups operating in Syria and Iraq," Biden said in a statement, pledging to hold "all those responsible to account at a time and in a manner of our choosing."

In Asia on Monday, the Nikkei 225 index in Tokyo was up 0.8%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was up 0.8%. The S&P/ASX 200 in Sydney closed up 0.3%.

In Hong Kong, Evergrande shares plunged 21%, before the stock exchange halted trading.

A Hong Kong court on Monday ordered the liquidation of battered Chinese property developer Evergrande, dealing another blow to the firm that has become the symbol of a property crisis that has sent shivers through the economy.

High Court Judge Linda Chan's decision effectively kickstarts a long process which includes liquidating the developer's assets and replacing its management to assuage concerns of its creditors.

The move against what was once China's biggest developer comes as it wallows under more than USD300 billion in liabilities, one of several firms hammered by a years-long government clampdown on the sector.

In the US on Friday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.2%, the S&P 500 down 0.1% and the Nasdaq Composite down 0.4%.

Gold was quoted at USD2,027.22 an ounce early Monday, higher than USD2,018.76 on Friday.

In Monday's corporate calendar, there is a trading statement from Team Internet.

By Sophie Rose, Alliance News senior reporter

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