Markets are set to begin the week firmly in the red as fears over surging inflation, slowing economic growth and lockdowns in China all hit sentiment.
Asian markets tumbled overnight, with Chinese stocks on track to hit their lowest level since May 2020.
The FTSE 100 was set to follow suit, while European stocks also pointed lower despite relief about French President Emmanuel Macron’s election victory.
The negative mood music comes as the Federal Reserve prepares to lift interest rates to tackle red-hot inflation, while ongoing lockdowns in China sparked demand fears and dragged down oil prices.
5 things to start your day
1) British Airways to base cabin crew in Madrid The UK flag carrier is to open a cabin crew base in Madrid as bosses scramble to avoid the recent travel chaos lasting throughout the summer
2) Russian sanctions are set to cost the UK economy 6bn over nine years Official analysis of the trade measures issued earlier this month has found the restrictions will deal a multi-billion pound blow to the economy over the next nine years.
3) Ukraine urges Johnson to ensure ‘not a drop’ of Russian oil reaches the UK Whitehall has given UK buyers until the end of the year to adjust to the Russian oil ban
4) Live music royalties fall again as industry fails to recover from pandemic Revenues from live performances hit £ 54m in 2021, 38pc lower than the £ 85m recorded in 2019
5) Twitter ‘more receptive’ to Elon Musk takeover plan Twitter and Mr Musk were meeting on Sunday to discuss the deal, according to the Wall Street Journal
What happened overnight
Asian markets sank Monday on growing concerns of a sharp hike in US interest rates as officials struggle to contain runaway inflation, while oil was hit by expectations Chinese demand will dry up owing to Covid lockdowns. Hong Kong, Shanghai and Taipei all fell more than two percent, while Tokyo, Seoul, Singapore, Manila and Jakarta were also deep in the red.
Coming up today
Corporate: Polymetal International (interim results)
Economics: Rightmove house price index (UK)construction output (EU)Chicago Fed National Activity Index (US)