EUROPE: Stocks down on China's Covid-19 protests

European stock markets were lower on Monday, 28 November 2022, as weekend of protests across the world's second-largest economy over restrictive against Covid-zero policies dampened market sentiment.

Meanwhile markets are keenly waiting for the speech by ECB's Christine Lagarde for cues on monetary policy stance.

At 13:30 GMT, the pan European Stoxx 600 index fell 0.9% to 436.64. The U.K.'s FTSE 100 index shed 0.5% to 7,447.42. France's CAC 40 index fell 1% to 6,648.85. Germany's DAX index dropped 1% to 14,398.91. Switzerland's Swiss Market index declined 0.02% to 11,165.90.

Market risk sentiments dampened as the social unrest in China has fuelled concerns over the social instability in the world's second-largest economy and that the road to reopening could be a bumpy one. The COVID protests have flared across China and spread to several cities in the wake of a deadly fire in Urumqi in the country's far west, with hundreds of demonstrators and police clashing in Shanghai on Sunday night.

 

Worries over the unprecedented wave of civil disobedience in a country where in-person protests are rare, the rising COVID cases, as well as how Beijing will react to the situation kept investors on edge.

China reported 40,052 daily new cases on Sunday, topping 40,000 for the first time, according to the health ministry, prompting widespread lockdowns and other curbs on movement and business across the country.

Back to home, Airbus shares declined over fears it would have to delay the delivery schedules due to supply disruptions. Dassault Systemes and TotalEnergies have also lost more than 2%.

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