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 (STOXX:XX:SXXP) slipped 0.1%, and the German DAX (XEX:DX:DAX) fell 0.2% after closing Friday at a record high.
U.S. stock futures (CME:ES00) also perched lower. On Friday, the S&P 500 (S&P:SPX) 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 (LON:UK:IWG) 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 (BRU:BE:ARGX) dropped 6%, after a Johnson & Johnson (NYS:JNJ) subsidiary discontinued a collaboration agreement for its anti-CD70 antibody cusatuzumab.
Fertilizer maker Yara International (OSL:NO:YAR) rose 3%, after agreeing to collaborate with commodity trader Trafigura on developing and promoting ammonia as a clean fuel in shipping.