Analyzing Setting's Impact on Mood

Read the following passage from a novel:

"As the cold fog wrapped around the aged buildings of the city, their outlines blurred into the shadows. The streetlights flickered sporadically, casting long, eerie shadows on the cracked pavement. A dis\tant church bell chimed, its sound muffled and somber, echoing the loneliness that hovered in the air. It was a Tuesday evening, yet the streets felt abandoned, as if the city itself were in a state of mourning."

Based on this passage, how does the author use the setting to enhance the mood of the narrative?