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Europe Markets: European stocks slip from record high

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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
SXXP,
+0.09%

slipped 0.1%, and the German DAX
DAX,
+0.04%

fell 0.2% after closing Friday at a record high.

U.S. stock futures
ES00,
-0.17%

also perched lower. On Friday, the S&P 500
SPX,
+0.88%

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
IWG,
-12.91%

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
ARGX,
-6.50%

dropped 6%, after a Johnson & Johnson
JNJ,
-0.04%

subsidiary discontinued a collaboration agreement for its anti-CD70 antibody cusatuzumab.

Fertilizer maker Yara International
YAR,
+2.85%

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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