By Steve Goldstein
European stocks edged back from record levels on Monday, as traders absorbed an environment where jobs growth is lagging behind the broader economic recovery.
Up 13% this year, the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.69% slipped 0.1%, and the German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.16% fell 0.2% after closing Friday at a record high.
U.S. stock futures /zigman2/quotes/209948968/delayed ES00 -1.12% also perched lower. On Friday, the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.32% finished at its second-highest level, gaining ground after the Labor Department reported 559,000 new nonfarm jobs were created in May, which lagged behind economist forecasts for a second month.
Treasury Secretary Janet Yellen, herself a former Federal Reserve chair, over the weekend suggested higher interest rates would be a “plus” if the result of strong economic growth. Eurodollar futures however suggest the first U.S. central bank rate rise won’t occur until 2023.
The Group of Seven industrialized nations agreed to pursue a 15% global minimum tax for companies — aimed at big technology corporates who are able to license their intellectual property to subsidiaries in low-tax jurisdictions — but there is still a long road to implementation.
Flexible-office-space provider IWG /zigman2/quotes/207263311/delayed UK:IWG +0.78% tumbled 15%, after warning underlying earnings in 2021 would be well below the previous year’s result, due to lower-than-expected improvements in occupancy.
Argen-x /zigman2/quotes/209977721/delayed BE:ARGX +1.83% dropped 6%, after a Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +0.35% subsidiary discontinued a collaboration agreement for its anti-CD70 antibody cusatuzumab.
Fertilizer maker Yara International /zigman2/quotes/200075065/delayed NO:YAR +0.93% rose 3%, after agreeing to collaborate with commodity trader Trafigura on developing and promoting ammonia as a clean fuel in shipping.