European stocks slip from record high

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EUROPE MARKETS

© henry nicholls/Agence France-Presse/Getty Images World financial leaders pose for a photo on the second day of the G-7 finance ministers meeting, at Lancaster House in London, England on June 5, 2021.

European stocks edged back from record levels on Monday, as traders absorbed an environment where jobs growth is lagging behind the broader economic recovery.

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Up 13% this year, the Stoxx Europe 600 slipped 0.1%, and the German DAX fell 0.2% after closing Friday at a record high.

U.S. stock futures also perched lower. On Friday, the S&P 500 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 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 dropped 6%, after a Johnson & Johnson subsidiary discontinued a collaboration agreement for its anti-CD70 antibody cusatuzumab.

Fertilizer maker Yara International rose 3%, after agreeing to collaborate with commodity trader Trafigura on developing and promoting ammonia as a clean fuel in shipping.

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