The FTSE 100 was broadly flat in Monday trade as investors assessed the situation in China and comments from Chinese officials on their zero-COVID policy.
Global equities rallied last week on rumours China had set up a committee to manage the end of their economically detrimental approach to managing the virus.
Over the weekend, Chinese officials said they would push on with lockdowns and quarantine in the immediate future, but there are at least signals they are considering a shift in policy.
The FTSE 100 was 0.1% weaker at 7,327 at the time of writing.
“The FTSE 100 on Monday largely consolidated its gains from the back end of last week as investors continue to weigh the latest hints on Chinese Covid policy,” said AJ Bell investment director Russ Mould.
“Hopes that Beijing was done with Covid lockdowns entirely certainly look premature but even a slight shift to a more pragmatic approach would be taken positively by markets.”
Nonetheless, Chinese equities rallied again overnight, and China-exposed FTSE 100 stocks gained. Goldman Sachs has predicted Chinese equities could rally as much as 20% if China’s COVID polices are scrapped.
Miners gain
Miners were among the top gainers on Monday in London with Rio Tinto adding 1.7%, Anglo American 2.6% and Antofagasta 1.8%. The sector has surged on Friday in line commodity prices.
Ocado was the top riser as it online retailer built on new contract wins last week and continued to rebound from heavy selling this year. Ocado shares were up 8% on the day but are still 59% down this year.
GlaxoSmithKline was the biggest faller, shedding 3.2%, after the pharma giant said it has received disappointing results from a blood cancer drug trail.