Stocks down after London attacks
After opening slightly higher, London's benchmark FTSE 100 index ended session around 0.3pc lower
LONDON (AFP) - Stock markets were lower Monday as traders reacted to the latest terror attacks in London, just days ahead of a British general election.
Markets also fell after Friday s poorly-received US jobs data and an escalating diplomatic crisis involving Qatar and its Gulf neighbours.
After opening slightly higher, London s benchmark FTSE 100 index ended the session around 0.3 percent lower than the close on Friday.
"Markets softened at the beginning of what could be a game-changer of a week in politics and monetary policy. Last week s soft US jobs report, another terror attack in London in the run up to the UK election and volatile oil prices all played a role in the downbeat tone," said London Capital Group analyst Jasper Lawler.
"Global equities are flat to negative as investors take risk off the table ahead of a busy week for politics and macroeconomics," said Accendo Markets analyst Henry Croft.
Forex.com analyst Fawad Razaqzada agreed.
"It is going to be a big week for the markets this one, especially towards the end of it," he said, pointing to the British election, the European Central Bank s policy meeting and testimony by former FBI Director James Comey in the United States.
In the eurozone on Monday, the Paris CAC 40 was more than half a percent lower, while Frankfurt s DAX 30 index was shut for a German public holiday.
Police carried out more raids and arrested a number of people on Monday after the Islamic State group claimed an attack by knife-wielding men who mowed down and stabbed revellers in London, killing seven people before being shot dead by police.
The rampage came as Prime Minister Theresa May seeks to keep her Conservative party in government and steer Britain through the Brexit process following Thursday s election.
Elsewhere, Asian stock markets began the week mostly lower as investors mulled the impact of the weekend terror attack that saw the pound lose ground.
"The pound is expected to remain volatile this week against the backdrop of the tragic weekend events in London and the flakiness of the polls in predicting what the outcome of Thursday s general election vote is likely to be," said Michael Hewson, chief market analyst at CMC Markets UK.
Ugly jobs report
Also occupying investors minds was a US employment report that showed wages growth and hiring coming in below expectations and testing confidence in the global economic outlook.
" Ugly best describes Friday s US employment report," said Stephen Innes, senior trader at Oanda.
On commodity markets, oil prices were lower after a short rally, while gold hit a five-week high at $1,282.50 an ounce thanks to its status as a haven investment.
Daniel Hynes, an analyst in Sydney at Australia & New Zealand Banking Group, said the decision by Saudi Arabia, Bahrain, the United Arab Emirates and Egypt to sever ties with Qatar, citing its support for terrorism, would have minimal impact on crude prices.
"On the face of it, it could present a risk, but I don t think there is too much in the Qatar situation," he told Bloomberg News.
"Geopolitical risks haven t really been that influential in recent times and I don t think that will change too much."
