FTSE 100 is set to open slightly lower due to unsettlement caused by anti-lockdown protests in China.

Anti-lockdown protests in several major Chinese cities, which also added to the decline in Asian markets, are set to cause the FTSE 100 to open lower on Monday.

In a wave of statewide protests not seen since pro-democracy rallies in 1989 were crushed, people took to the streets on Sunday in many major Chinese cities to demand an end to lockdowns and greater political freedoms.

As a result, Asian markets fell. The Hang Seng index in Hong Kong fell 1.8% while the Shanghai Composite fell 0.9% in China.

The dollar also climbed in Monday’s early trading as a result of the protests as investors turn away from riskier assets. Investors were concerned about how Beijing's leadership would handle the current wave of civil disobedience at a time when COVID cases are on the rise.

The Chinese economy has suffered significantly as a result of the COVID limitations, and officials have attempted a number of steps to boost growth.

The People's Bank of China (PBOC), the country's central bank, announced on Friday that the reserve requirement ratio (RRR) for banks would be reduced by 25 basis points (bps) as of December 5th.

The U.S. dollar's drop, which had been slowed by expectations that the Federal Reserve will soon moderate its rate hike pace - a view that was reinforced by the November meeting minutes released last week - has now stopped due to the most recent developments in China.

At a Brookings Institution speech on Wednesday, Fed Chair Jerome Powell is scheduled to discuss the prospects for the U.S. economy and the labour market. His remarks may offer additional hints about the direction of U.S. monetary policy.

(Sources: Investing.com, reuters.com)