Chinese Business

European stock markets wavered on Wednesday on news that the eurozone and UK economies shrank in November, but by less than the prior month.

In midday deals, Frankfurt equities fell 0.2 percent and Paris flatlined, while London won 0.3 percent.

Oil prices slid on fears of more painful Covid lockdowns in China that could ravage the Asian giant’s energy demand. 

The euro steadied against the dollar and yen.

– ‘Grim picture’ –

The eurozone’s composite purchasing managers index (PMI), a key economic indicator, improved from 47.3 in October to 47.8 in November, S&P Global said.

However, activity languished under 50 — signifying the fifth consecutive month of economic contraction as inflation spikes.

“The latest macroeconomic data from Europe continues to paint a grim picture,” said City Index analyst Fawad Razaqzada.

“Flash manufacturing and services PMIs for France and Germany, and eurozone as a whole, remain in contraction territory.

“Although the PMI data still managed to beat expectations, that’s only because we are seeing improvement from a very low base.”

Britain’s composite PMI was also fractionally higher, from 48.2 to 48.3 in November, but that marked the fourth straight contraction.

The news comes after the UK government recently confirmed that the nation’s economy was in recession, with inflation sitting at a 41-year high.

The reading is “consistent with our view that the (British) economy is probably already in recession”, noted Capital Economics analyst Ashley Webb.

Elsewhere, Asian stocks rose on hopes that the Federal Reserve will carry out smaller US rate hikes at its next few meetings after inflation cooled in the world’s biggest economy.

But there is growing concern that a surge in China’s Covid-19 cases will see officials impose more economically-damaging restrictions.

Wall Street on Tuesday enjoyed a timely rally thanks to healthy retailer earnings amid signs US consumers — the economy’s key driver — remain resilient to higher borrowing costs and inflation.

Minutes from the Fed’s policy meeting this month will be pored over when they are released Wednesday, with traders hoping for some insight into the bank’s thinking on rates.

However, US trading volumes are likely to be muted ahead of Thanksgiving on Thursday.

Traders were also keeping tabs on protests at the world’s largest iPhone factory as Foxconn workers grow increasingly angry at long-running Covid curbs.

– Key figures around 1200 GMT –

London – FTSE 100: UP 0.3 percent at 7,473.95 points

Paris – CAC 40: FLAT at 6,659.70

Frankfurt – DAX: DOWN 0.2 percent at 14,401.20

EURO STOXX 50: UP 0.1 percent at 3,935.38

Hong Kong – Hang Seng Index: UP 0.6 percent at 17,523.81 (close)

Shanghai – Composite: UP 0.3 percent at 3,096.91 (close)

Tokyo – Nikkei 225: Closed for a holiday

New York – Dow: UP 1.2 percent at 34,098.10 (close)

Euro/dollar: UP at $1.0315 from $1.0304 on Tuesday

Dollar/yen: UP at 141.45 yen from 141.23 yen

Pound/dollar: UP at $1.1938 from $1.1886

Euro/pound: DOWN at 86.39 pence from 86.69 pence

West Texas Intermediate: DOWN 2.1 percent at $79.22 per barrel

Brent North Sea crude: DOWN 2.3 percent at $86.32 per barrel

burs-rfj/bcp/kjm

Global stocks mostly rose Tuesday, shrugging off worries about inflation and the potential reinstatement of severe China Covid-19 restrictions ahead of the kickoff of the holiday shopping season.

London, Paris and Frankfurt closed in the green while Wall Street secured solid gains following a rally in beaten-down tech shares such as Facebook parent Meta and Google parent Alphabet that have lagged the broader market for much of 2022.

Briefing.com analyst Patrick O’Hare said Tuesday’s rally reflected “the vicissitudes of a holiday market” two days before the Thanksgiving break when there were few major economic indicators.

Analysts also cited good results from Best Buy and some other retailers which offered hope that a resilient American consumer will keep spending during the critical shopping season that begins on “Black Friday.”

But analysts continued to monitor the state of play in China, which over the weekend reported its first Covid-19 fatalities in months.

“Some investors are convinced that China’s reopening is a formality and will be catalysed by the WHO downgrading Covid to an endemic. We know China’s reopening will be laced with fits and starts,” said Stephen Innes of SPI Asset Management.

Traders are fearful that Chinese authorities will revert to highly restrictive Covid containment measures that have already dealt a chilling blow to its economy this year. 

“Renewed crackdowns in the world’s second largest economy raise the prospect of a global recession,” City Index analyst Fiona Cincotta told AFP.

World oil prices also clawed back ground, having tumbled on Monday to lows unseen since January, with the rebound attributed in part to the Saudi Arabian denial of a report of a possible OPEC production boost.

The dollar slid against main rivals ahead of minutes from the Federal Reserve’s latest policy meeting that saw it carry out another big hike to US interest rates.

Hopes that the central bank will begin to take its foot off the pedal were boosted earlier this month by figures showing US inflation slowed more than expected, suggesting a series of hikes were beginning to bite.

The OECD forecast Tuesday that world economic growth will slow sharply from 3.1 percent this year to 2.2 percent next year on high inflation.

And it warned of “serious headwinds” including rising interest rates, surging energy prices and Russia’s war on Ukraine.

Among individual companies, Manchester United soared 14.7 percent following a Sky News report that the team’s US-based owners, the Glazer family, could sell the venture.

The report came as the team announced that Portuguese star Cristiano Ronaldo was leaving the club immediately following a broadcast interview in which he sharply criticized the Glazer family.

Late Tuesday, Manchester United released a statement saying its board is “commencing a process to explore strategic alternatives for the club,” including a possible sale.

– Key figures around 2200 GMT –

New York – Dow: UP 1.2 percent at 34,098.10 (close)

New York – S&P 500: UP 1.4 percent at 4,003.58 (close)

New York – Nasdaq: UP 1.4 percent at 11,174.84 (close)

London – FTSE 100: UP 1.0 percent at 7,452.84 (close)

Paris – CAC 40: UP 0.4 percent at 6,657.53 (close)

Frankfurt – DAX: UP 0.3 percent at 14,422.35 (close)

EURO STOXX 50: UP 0.5 percent at 3,929.90 (close)

Tokyo – Nikkei 225: UP 0.6 percent at 28,115.74 (close)

Hong Kong – Hang Seng Index: DOWN 1.3 percent at 17,424.41 (close)

Shanghai – Composite: UP 0.1 percent at 3,088.94 (close)

Euro/dollar: UP at $1.0305 from $1.0242 on Monday

Dollar/yen: DOWN at 141.20 yen from 142.14 yen

Pound/dollar: UP at $1.1886 from $1.1823

Euro/pound: UP at 86.66 pence from 86.63 pence

Brent North Sea crude: UP 1.0 percent at $88.36 per barrel

West Texas Intermediate: UP 1.1 percent at $80.95 per barrel

European and US stocks rose and oil prices recovered from heavy losses on Tuesday despite fresh concern that China’s latest Covid-19 outbreaks could herald a global recession.

London, Paris and Frankfurt closed in the green while Wall Street was also up even as worries grew over the economic fallout of Beijing’s efforts to contain rising infections in the world’s second-largest economy.

“China remains entirely polarising,” noted Stephen Innes of SPI Asset Management.

“Some investors are convinced that China’s reopening is a formality and will be catalysed by the WHO downgrading Covid to an endemic. We know China’s reopening will be laced with fits and starts,” he added.

“You cannot rule out more intermittent lockdowns in the near term, but in a more targeted way instead of widespread.”

Traders are fearful that Chinese authorities will revert to highly restrictive Covid containment measures that have already dealt a chilling blow to its economy this year. 

“Renewed crackdowns in the world’s second largest economy raise the prospect of a global recession,” City Index analyst Fiona Cincotta told AFP.

Craig Erlam, senior market analyst at OANDA trading platform, cautioned that this week “may just be a void in an otherwise turbulent year” thanks to a lack of major events and the US Thanksgiving public holiday.

World oil prices also clawed back ground, having tumbled on Monday to lows unseen since January on forecasts of a hit to Chinese demand, although analysts warned the recovery could be constrained.

“The upside potential is being limited by a general sense of uncertainty brought by China’s unclear demand prospects while also being impacted by the ongoing Russia-Ukraine conflict,” said Walid Koudmani, chief market analyst at XTB.

Erlam added that the rejection by OPEC+ members of reports they would boost oil production aided the commodity’s rally.

The dollar slid against main rivals ahead of minutes from the Federal Reserve’s latest policy meeting that saw it carry out another big hike to US interest rates.

Hopes that the central bank will begin to take its foot off the pedal were boosted earlier this month by figures showing US inflation slowed more than expected, suggesting a series of hikes were beginning to bite.

– ‘Serious headwinds’ –

The OECD forecast Tuesday that world economic growth will slow sharply from 3.1 percent this year to 2.2 percent next year on high inflation.

And it warned of “serious headwinds” including rising interest rates, surging energy prices and Russia’s war on Ukraine.

Global stock markets began November with a rally on easing inflation concerns and signs China was edging towards a looser approach to the disease.

However, the optimism has been given a massive jolt since the country announced its first virus deaths in six months.

Case numbers have surged across China, just a week after it said it would begin rolling back some of the strict Covid rules that have been in place since the pandemic started in 2020.

– Key figures around 1630 GMT –

London – FTSE 100: UP 1.0 percent at 7,452.84 points (close)

Paris – CAC 40: UP 0.4 percent at 6,657.53 (close)

Frankfurt – DAX: UP 0.3 percent at 14,422.35 (close)

EURO STOXX 50: UP 0.5 percent at 3,929.90

New York – Dow: UP 0.8 percent at 33,959.30

Tokyo – Nikkei 225: UP 0.6 percent at 28,115.74 (close)

Hong Kong – Hang Seng Index: DOWN 1.3 percent at 17,424.41 (close)

Shanghai – Composite: UP 0.1 percent at 3,088.94 (close)

Euro/dollar: UP at $1.0271 from $1.0242 on Monday

Dollar/yen: DOWN at 141.43 yen from 142.14 yen

Pound/dollar: UP at $1.1865 from $1.1823

Euro/pound: DOWN at 86.55 pence from 86.63 pence

Brent North Sea crude: UP 1.5 percent at $88.80 per barrel

West Texas Intermediate: UP 1.5 percent at $81.22 per barrel

European and US stocks rose and oil prices recovered from heavy losses on Tuesday despite fresh concern that China’s latest Covid-19 outbreaks could herald a global recession.

London, Paris and Frankfurt made modest progress in early afternoon deals after a mixed opening, while Wall Street opened in the green.

The optimism came after a mixed Asian showing, as worries grew over the economic fallout of Beijing’s efforts to contain rising infections in the world’s second-largest economy.

“China remains entirely polarising,” noted Stephen Innes of SPI Asset Management.

“Some investors are convinced that China’s reopening is a formality and will be catalysed by the WHO downgrading Covid to an endemic. We know China’s reopening will be laced with fits and starts,” he added.

“You cannot rule out more intermittent lockdowns in the near term, but in a more targeted way instead of widespread.”

Traders are fearful that Chinese authorities will revert to highly restrictive Covid containment measures that have already dealt a chilling blow to its economy this year.

“This isn’t just about China,” City Index analyst Fiona Cincotta told AFP. 

“Renewed crackdowns in the world’s second largest economy raise the prospect of a global recession.”

World oil prices also clawed back ground, having tumbled on Monday to lows unseen since January on forecasts of a hit to Chinese demand, although analysts warned the recovery could be limited.

“The upside potential is being limited by a general sense of uncertainty brought by China’s unclear demand prospects while also being impacted by the ongoing Russia-Ukraine conflict,” said Walid Koudmani, chief market analyst at XTB.

The dollar slid against main rivals ahead of minutes from the Federal Reserve’s latest policy meeting that saw it carry out another big hike to US interest rates.

Hopes that the central bank will begin to take its foot off the pedal were boosted earlier this month by figures showing US inflation slowed more than expected, suggesting a series of hikes were beginning to bite.

– ‘Serious headwinds’ –

The OECD forecast Tuesday that world economic growth will slow sharply from 3.1 percent this year to 2.2 percent next year on high inflation.

And it warned of “serious headwinds” including rising interest rates, surging energy prices and Russia’s war on Ukraine.

Global stock markets began November with a rally on easing inflation concerns and signs China was edging towards a looser approach to the disease.

However, the optimism has been given a massive jolt since the country announced its first virus deaths in six months.

Case numbers have surged across China, with residents in Beijing worried that a record number of new infections will lead to lockdown measures similar to those seen earlier in the year in Shanghai, which lasted for months.

The flare-ups came just a week after China said it would begin rolling back some of the strict Covid rules that have been in place since the pandemic started in 2020, even as the rest of the world has moved on.

– Key figures around 1430 GMT –

London – FTSE 100: UP 0.6 percent at 7,419.67 points

Paris – CAC 40: UP 0.2 percent at 6,649.79

Frankfurt – DAX: UP 0.3 percent at 14,421.25

EURO STOXX 50: UP 0.4 percent at 3,923.14

New York – Dow: UP 0.6 percent at 33,910.82

Tokyo – Nikkei 225: UP 0.6 percent at 28,115.74 (close)

Hong Kong – Hang Seng Index: DOWN 1.3 percent at 17,424.41 (close)

Shanghai – Composite: UP 0.1 percent at 3,088.94 (close)

Euro/dollar: UP at $1.0264 from $1.0242 on Monday

Dollar/yen: DOWN at 141.41 yen from 142.14 yen

Pound/dollar: UP at $1.1878 from $1.1823

Euro/pound: DOWN at 86.43 pence from 86.63 pence

Brent North Sea crude: UP 1.5 percent at $88.79 per barrel

West Texas Intermediate: UP 1.5 percent at $81.25 per barrel

European equities attempted to rebound Tuesday but were dented by concern over China’s latest Covid-19 outbreaks.

London rose higher but Frankfurt and Paris shed earlier gains after a mixed Asian showing, as worries grew over Beijing’s efforts to contain rising infections.

Trading was lighter than normal on Wall Street owing to the upcoming Thanksgiving break.

World oil prices clawed back ground, having tumbled the previous day on forecasts of a hit to Chinese demand.

The dollar slid against main rivals ahead of minutes from the Federal Reserve’s last policy meeting that saw it carry out another big hike to US interest rates.

Hopes that the central bank will begin to take its foot off the pedal were boosted earlier this month by figures showing US inflation slowed more than expected, suggesting a series of hikes were beginning to bite.

“Stocks (in Europe) are attempting to push higher after closing in the red on Monday,” City Index analyst Fiona Cincotta told AFP.

“Fears of renewed mobility restrictions and tighter curbs are unnerving investors.”

Traders are fearful that Chinese authorities will revert to highly restrictive Covid containment measures that have already dealt a chilling blow to the world’s number two economy this year.

That could herald a new global economic downturn.

“This isn’t just about China,” warned Cincotta.

“Renewed crackdowns in the world’s second largest economy raise the prospect of a global recession.”

The OECD forecast Tuesday that world economic growth will slow sharply from 3.1 percent this year to 2.2 percent next year on high inflation.

And it warned of “serious headwinds” including rising interest rates, surging energy prices and Russia’s war on Ukraine.

Global stock markets began November with a rally on easing inflation concerns and signs China was edging towards a looser approach to the disease.

However, the optimism has been given a massive jolt since the country announced its first virus deaths in six months.

Case numbers have surged across China, with residents in Beijing worried that a record number of new infections will lead to lockdown measures similar to those seen earlier in the year in Shanghai, which lasted for months.

The flare-ups came just a week after China said it would begin rolling back some of the strict Covid rules that have been in place since the pandemic started in 2020, even as the rest of the world has moved on.

– Key figures around 1140 GMT –

London – FTSE 100: UP 0.6 percent at 7,418.43 points

Paris – CAC 40: DOWN 0.2 percent at 6,620.62

Frankfurt – DAX: FLAT at 14,376.42

EURO STOXX 50: FLAT at 3,908.16

Tokyo – Nikkei 225: UP 0.6 percent at 28,115.74 (close)

Hong Kong – Hang Seng Index: DOWN 1.3 percent at 17,424.41 (close)

Shanghai – Composite: UP 0.1 percent at 3,088.94 (close)

New York – Dow: DOWN 0.1 percent at 33,700.28 (close)

Euro/dollar: UP at $1.0278 from $1.0242 on Monday

Dollar/yen: DOWN at 141.14 yen from 142.14 yen

Pound/dollar: UP at $1.1874 from $1.1823

Euro/pound: DOWN at 86.56 pence from 86.63 pence

Brent North Sea crude: UP 1.4 percent at $88.65 per barrel

West Texas Intermediate: UP 1.3 percent at $81.07 per barrel

burs-rfj/bcp/imm

Growing fears about China’s latest Covid-19 outbreak on Tuesday rattled investors, who fear authorities will revert to highly restrictive containment measures that have already dealt a chilling blow to the world’s number two economy this year.

After starting November with a rally thanks to easing inflation concerns and signs China was edging towards a looser approach to the disease, the optimism has been given a massive jolt since the country announced its first virus deaths in six months.

Case numbers have surged across China, with residents in Beijing worried that a record number of new infections will lead to lockdown measures similar to those seen earlier in the year in Shanghai, which lasted for months.

The flare-ups came just a week after China said it would begin rolling back some of the strict Covid rules that have been in place since the pandemic started in 2020, even as the rest of the world has moved on.

Analysts said the latest developments highlight the long road ahead for China in emerging from the crisis as President Xi Jinping sticks solidly to a zero-Covid strategy that is widely blamed for the country’s economic troubles.

“Risk sentiment has been under pressure on questions around China reopening,” said SPI Asset Management’s Stephen Innes.

“Some investors are convinced that China’s reopening is a formality and will be catalysed by the (World Health Organization) downgrading Covid to an endemic (disease),” he added.

“We know that China’s reopening will be laced with fits and starts as the two-step-forward-one-step-back routine becomes the norm.”

Hong Kong, which thundered more than 10 percent higher in a three-day surge earlier this month, fell for a fifth straight day, while Seoul was also lower along with Wellington, Bangkok and Jakarta.

Still, there were gains in Tokyo, Shanghai, Sydney, Singapore, Taipei, Manila and Mumbai.

London and Paris rose but Frankfurt fell.

– Eyes on Fed minutes –

That came after a drop on Wall Street, where trading was lighter than usual owing to the Thanksgiving break at the end of the week.

Wednesday sees the release of minutes from the US Federal Reserve’s most recent policy meeting, which will be pored over for insight into officials’ thinking against the backdrop of four-decade-high inflation and signs of a slowing economy.

Hopes that the bank will begin to take its foot off the pedal were boosted earlier this month by figures showing inflation slowed more than expected, suggesting a series of hikes were beginning to bite.

Still, several members of the Fed’s top brass have warned against getting carried away and said more increases were needed to get on top of prices.

But JPMorgan Chase & Co’s Marko Kolanovic said markets would likely stumble into the new year and only pick up once the US central bank takes a more dovish stance on borrowing costs.

JPMorgan saw risk assets to trade “rangebound with a more pronounced downside risk”.

– Key figures around 0815 GMT –

Tokyo – Nikkei 225: UP 0.6 percent at 28,115.74 (close)

Hong Kong – Hang Seng Index: DOWN 1.3 percent at 17,424.41 (close)

Shanghai – Composite: UP 0.1 percent at 3,088.94 (close)

London – FTSE 100: UP 0.5 percent at 7,412.83

Euro/dollar: UP at $1.0261 from $1.0245 on Monday

Dollar/yen: DOWN at 141.86 yen from 142.10 yen

Pound/dollar: UP at $1.1844 from $1.1823

Euro/pound: UP at 86.64 pence from 86.58 pence

West Texas Intermediate: UP 0.7 percent at $80.62 per barrel

Brent North Sea crude: UP 0.9 percent at $88.22 per barrel

New York – Dow: DOWN 0.1 percent at 33,700.28 (close)

— Bloomberg News contributed to this story —

Growing fears about China’s latest Covid-19 outbreaks Tuesday rattled investors, who fear authorities will revert to highly restrictive containment measures that have already dealt a chilling blow to the world’s number two economy this year.

After starting November with a rally thanks to easing inflation concerns and signs China was edging towards a looser approach to the disease, the optimism has been given a massive jolt since the country announced its first virus deaths in six months.

They come as infections rise across the country, with residents in Beijing worried that leaders will introduce lockdown measures similar to those seen earlier in the year in Shanghai, which lasted for months.

The flare-ups come just a week after China said it would begin rolling back some of the strict Covid rules that have been in place since the pandemic started in 2020, even as the rest of the world has moved on.

Analysts said the latest developments highlight the long road ahead for China in emerging from the crisis as President Xi Jinping sticks solidly to a zero-Covid strategy that is widely blamed for the country’s economic troubles.

“Risk sentiment has been under pressure on questions around China reopening,” said SPI Asset Management’s Stephen Innes.

“Some investors are convinced that China’s reopening is a formality and will be catalysed by the (World Health Organization) downgrading Covid to an endemic.

“We know that China’s reopening will be laced with fits and starts as the two-step-forward-one-step-back routine becomes the norm.”

Hong Kong, which thundered more than 10 percent higher in a three-day surge earlier this month, fell for a fifth straight day, while Shanghai was also lower along with Seoul, Taipei and Wellington.

Still, there were gains in Tokyo, Sydney, Singapore, Manila and Jakarta. 

That came after a drop on Wall Street, where trading is lighter than usual owing to the Thanksgiving break at the end of the week.

Wednesday sees the release of minutes from the Federal Reserve’s most recent policy meeting, which will be pored over for insight into officials’ thinking against the backdrop of four-decade-high inflation and signs of a slowing economy.

Hopes that the bank will begin to take its foot off the pedal were boosted earlier this month by figures showing inflation slowed more than expected, suggesting a series of hikes were beginning to bite.

Still, several members of the Fed’s top brass have warned against getting carried away and said more increases were needed to get on top of prices.

But JPMorgan Chase & Co’s Marko Kolanovic said markets would likely stumble into the new year and only pick up once the US central bank takes a more dovish stance on borrowing costs. JPMorgan saw risk assets to trade “rangebound with a more pronounced downside risk”.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 0.7 percent at 28,150.50 (break)

Hong Kong – Hang Seng Index: DOWN 0.9 percent at 17,500.32

Shanghai – Composite: DOWN 0.1 percent at 3,083.51

Euro/dollar: UP at $1.0262 from $1.0245 on Monday

Dollar/yen: DOWN at 141.79 yen from 142.10 yen

Pound/dollar: UP at $1.1858 from $1.1823

Euro/pound: DOWN at 86.55 pence from 86.58 pence

West Texas Intermediate: UP 0.3 percent at $80.30 per barrel

Brent North Sea crude: UP 0.5 percent at $87.84 per barrel

New York – Dow: DOWN 0.1 percent at 33,700.28 (close)

London – FTSE 100: DOWN 0.1 percent at 7,376.85 (close)

— Bloomberg News contributed to this story —

Thirty-six people were killed and two are missing after a fire at a plant in central China, state media said Tuesday, citing local authorities.

The fire took place “at a plant in Anyang City, central China’s Henan Province on Monday afternoon”, news agency Xinhua reported without sharing further details. 

State media said rescue services first received reports of a fire at 4:22 pm (0822 GMT) at Kaixinda Trading Co., Ltd.

“After receiving the alarm, the municipal fire rescue detachment immediately dispatched forces to the scene,” CCTV reported.

“Public security, emergency response, municipal administration, and power supply units rushed to the scene at the same time to carry out emergency handling and rescue work,” it said, adding the fire had been extinguished by around 11 pm local time.

In addition to the dead and missing, two are in hospital with non-life-threatening injuries, CCTV added.

Authorities said “criminal suspects” had been taken into custody in connection with the fire, but did not provide further details.

Industrial accidents are common in China due to weak safety standards and corruption among officials tasked with enforcing them.

In June, one person was killed and another injured in an explosion at a chemical plant in Shanghai. 

The fire at a Sinopec Shanghai Petrochemical Co. plant in the outlying Jinshan district sent thick clouds of smoke over a vast industrial zone as three fires blazed in separate locations, turning the sky black. 

And last year, a gas blast killed 25 people and reduced several buildings to rubble in the central city of Shiyan.

In March 2019, an explosion at a chemical factory in Yancheng, located 260 kilometres (161 miles) from Shanghai, killed 78 people and devastated homes in a several-kilometre radius.

Four years prior, a giant explosion in northern Tianjin at a chemical warehouse killed 165 people, one of China’s worst-ever industrial accidents. 

Oil prices plunged to lows unseen since January and global stocks mostly fell on Monday as renewed concerns about harsh coronavirus curbs in China rattled investor sentiment.

China’s first coronavirus death in six months sparked fears officials would reimpose strict, economically painful restrictions to fight outbreaks across the world’s second-biggest economy.

Brent North Sea crude slumped 5.5 percent to $82.84 per barrel and WTI shed 5.7 percent to $75.55 in mid-afternoon trading on fears over Chinese energy demand. 

Paris, London, Frankfurt and Milan all ended in the red on Monday while Wall Street also lost ground.

The fall in European and US stocks came after most Asian markets including Hong Kong’s Hang Seng Index and Shanghai ended lower, although Bangkok, Tokyo and Wellington were up.

The death of an 87-year-old man in Beijing on Sunday came as infections across China spiked, testing authorities’ plans to loosen their grip by lowering quarantine times for foreigners and cancelling mass tests.

Two further Covid deaths were recorded on Monday, both elderly residents from Beijing.

The news threw a spanner in the works for investors who had grown hopeful of a gradual reopening of China’s economy.

“Crude oil prices have slipped back sharply on the back of concerns over weakening Chinese demand, as well as reports that Saudi Arabia supports the idea of a production increase,” noted Michael Hewson, chief market analyst at CMC Markets UK.

“No one can tell whether (Chinese President) Xi Jinping would pull back from the reopening plans, which would be another disaster for the Chinese stocks, and for the investor confidence,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. 

Nevertheless, global markets have enjoyed a broadly healthy November thanks to signs of China easing and indications of slowing US inflation that fanned optimism the Federal Reserve would start to slow its pace of interest rate hikes.

But several officials soon lined up to warn that more needed to be done to get inflation back down from four-decade highs to more bearable levels.

Markets are meanwhile expected to stay relatively quiet for the rest of the week, with many US investors taking time off for Thanksgiving.

“Traders are also concerned by continued weakness in crypto prices in the wake of FTX’s collapse,” added market analyst Fawad Razaqzada.

“With this also being a quiet day and week in terms of macro data, they are understandably keen to proceed with caution.”

– Key figures around 1630 GMT –

London – FTSE 100: DOWN 0.1 percent at 7,376.85 points (close)

Paris – CAC 40: DOWN 0.2 percent at 6,634.45 (close)

Frankfurt – DAX: DOWN 0.4 percent at 14,379.93 (close)

EURO STOXX 50: DOWN 0.4 percent at 3,909.28

New York – Dow: DOWN 0.3 percent at 33,644.55

Tokyo – Nikkei 225: UP 0.2 percent at 27,944.79 (close)

Hong Kong – Hang Seng Index: DOWN 1.9 percent at 17,655.91 (close)

Shanghai – Composite: DOWN 0.4 percent at 3,085.04 (close)

Euro/dollar: DOWN at $1.0247 from $1.0325 on Friday

Dollar/yen: UP at 141.90 yen from 140.37 yen

Pound/dollar: DOWN at $1.1799 from $1.1890

Euro/pound: UP at 86.84 pence from 86.34 pence

West Texas Intermediate: DOWN 5.7 percent at $75.51 per barrel

Brent North Sea crude: DOWN 5.8 percent at $82.51 per barrel

Asian and European stocks mostly fell Monday, with investor sentiment hit by renewed Covid concerns in China amid warnings that markets would remain lacklustre for some time.

Shares headed lower as China’s first coronavirus death in six months sparked fears officials would reimpose strict, economically painful restrictions to fight outbreaks across the country.

“The bear market is not over, in our view,” Goldman Sachs strategist Peter Oppenheimer said.

“The conditions that are typically consistent with an equity trough have not yet been reached. We would expect lower valuations (consistent with recessionary outcomes), a trough in the momentum of growth deterioration, and a peak in interest rates before a sustained recovery begins.”

Oil prices also slid on fears over energy demand in China, the world’s second biggest economy.

“There are concerns China may tighten Covid curbs further after the first Covid-related death in almost six months was reported, and a city near Beijing enforced a slew of restrictions,” said market analyst Fawad Razaqzada.

“Traders are also concerned by continued weakness in crypto prices in the wake of FTX’s collapse,” he said.

The death of an 87-year-old man in Beijing on Sunday came as infections across the country spiked, testing authorities’ plans to loosen their grip by lowering quarantine times for foreigners and cancelling mass tests.

Two further Covid deaths were recorded on Monday, both elderly residents from Beijing.

The news threw a spanner in the works for investors who had grown hopeful of a gradual reopening of China’s economy.

Hong Kong’s Hang Seng Index fell nearly two percent, extending a sell-off at the end of last week.

Shanghai was also down along with most Asian markets, but Bangkok, Tokyo and Wellington ended higher.

Nevertheless, global markets have enjoyed a broadly healthy November thanks to signs of China easing and indications of slowing US inflation that fanned optimism the Federal Reserve would start to slow its pace of interest rate hikes.

But several officials soon lined up to warn that more needed to be done to get inflation back down from four-decade highs to more bearable levels.

Markets are meanwhile expected to stay relatively quiet for the rest of the week, with many US investors taking time off for Thanksgiving.

– Key figures around 1430 GMT –

London – FTSE 100: DOWN 0.2 percent at 7,373.98 points

Paris – CAC 40: DOWN 0.3 percent at 6,626.94

Frankfurt – DAX: DOWN 0.4 percent at 14,379.97

EURO STOXX 50: DOWN 0.4 percent at 3,909.67

New York – Dow: DOWN by less than 0.1 percent at 33,735.28

Tokyo – Nikkei 225: UP 0.2 percent at 27,944.79 (close)

Hong Kong – Hang Seng Index: DOWN 1.9 percent at 17,655.91 (close)

Shanghai – Composite: DOWN 0.4 percent at 3,085.04 (close)

Euro/dollar: DOWN at $1.0240 from $1.0325 on Friday

Dollar/yen: UP at 141.48 yen from 140.37 yen

Pound/dollar: DOWN at $1.1809 from $1.1890

Euro/pound: UP at 86.71 pence from 86.34 pence

West Texas Intermediate: DOWN 3.7 percent at $77.16 per barrel

Brent North Sea crude: DOWN 3.7 percent at $84.36 per barrel