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European stocks held in a narrow range on Monday, pausing after a rally that has seen stocks rise in five of the past six weeks.

After rising 1.2% last week, the Stoxx Europe 600 slipped 0.4%.

Nokia shares jumped 6.4%, catching a rally in its US-listed stock after Goldman Sachs raised its rating on the telecommunications equipment maker to buy from neutral.

Shares of British luxury goods group Burberry fell 7% after Marco Gobbetti announced he would leave the company at the end of the year to take on the same role at leather goods maker Salvatore Ferragamo in his Italy. native. Burberry said it has started looking for its successor.

UK bakery Greggs was up 3% early in the session before losing some of those gains, after saying the rebound in sales since its May 10 update was stronger than expected.

American markets:

Equity futures wobbled on Monday, suggesting major indices are approaching record highs after the S&P 500 posted its strongest weekly advance since February.

Broad gauge futures contracts, which closed their 31st all-time high on Friday, drifted between moderate gains and losses.

Stocks have been rising since mid-May, boosted by a robust economic recovery, the prospect of further fiscal stimulus and low bond yields that have prompted investors to buy stocks. However, some investors are concerned that the market will have a difficult time due to signs of spike in growth and the nervous outlook for inflation and monetary policy.

“This recovery still has a long way to go and there is still strong growth,” said Frank Øland, chief strategist at Danske Bank. “But of course you’ve probably passed peak growth in the US, so the data will start to look less impressive, and that might be a concern.”

Danske has reduced its holdings of US stocks and bought more stocks in Europe, where Øland said the economic recovery is still gaining momentum.

Investors said financial markets are likely to be calm this week ahead of Friday’s jobs report. This should show that the economy created 683,000 jobs in June. Fund managers will also analyze Eurozone consumer price data on Wednesday to determine if inflation takes off globally.

Equities will continue to perform well if money managers remain confident that the inflation surge will subside, keeping bond yields relatively low, said Edward Park, chief investment officer at Brooks Macdonald. “Investors who deploy capital will have the option of losing money in the bond market after inflation, losing it in cash, or putting it in risky assets.”

Forex:

The dollar is expected to continue reversing its initial gains this week after the Federal Reserve’s latest policy meeting, unless the June report on the non-farm payroll in the United States exceeds expectations, MUFG Bank said. .

Earlier this month, the Fed advanced its expectations for the first post-pandemic interest rate hike. However, comments from Fed Chairman Jerome Powell and New York Fed Chairman John Williams last week “helped allay fears of an even more abrupt shift to a stricter policy of the Fed, ”MUFG currency analyst Lee Hardman said.

“Their constant desire to reach full employment before raising rates gives reassurance that rate hikes are unlikely until the end of next year / early 2023,” he said.

The pound will weaken if the EU does not respond to the UK’s request to extend a grace period for imports of chilled meat into Northern Ireland before the June 30 deadline, ING said.

“The background music about it had been positive last week, but not to hear anything until Wednesday – for example, would the waiver of EU rules be extended until the end of the year and the Kingdom – Uni would propose it unilaterally – could disrupt the GBP, “ING analysts mentioned.

“EUR / GBP looks set to continue trading calm ranges unless we see a break above the 0.8610 / 20 area – where GBP underperformance could emerge.”

Bitcoin was up 8.5% from its price at 5 p.m. ET on Friday to $ 34,935.98. The UK’s main financial regulator over the weekend ordered the local entity of Binance Holdings Ltd. to cease its activities in the country. Binance is the world’s largest cryptocurrency exchange network.

Obligations :

In the bond market, the yield on 10-year Treasuries edged down to 1.516% from 1.535% on Friday.

Barclays strategists have said they expect the European Central Bank to use its strategy review announcement later this year to lay the groundwork for an accommodating transition into quantitative easing, even in a post PEPP [Pandemic Emergency Purchase Program] world in 2022.

They say they expect asset purchases to continue at an average monthly rate of around € 60 billion in 2022, mainly through the regular asset purchase program.

“This should come as a conciliatory surprise to the market compared to current expectations,” Barclays said.

This would imply that the ECB would continue to absorb a “very significant” portion of the net supply of sovereign bonds during the remainder of 2021 and 2022, Barclays said.

The ECB is expected to publish the review of its strategy in the fall, possibly as early as September.

Merchandise :

Futures contracts on Brent, the benchmark in international energy markets, fell. Traders await a meeting of the Organization of the Petroleum Exporting Countries and its allies on Thursday. The deal is expected to discuss a modest increase in production.

Gold prices rose after US price data fell below expectations on Friday.

While gold is generally viewed as a hedge against inflation, gold investors fear that high inflation will cause the Fed to raise interest rates earlier than initially suggested. This could increase bond yields and weigh on the precious metal.

Copper prices edged down early in the week amid concerns over the health of a major Chinese state-owned asset manager. Three-month copper on the LME edged down 0.2% to $ 9,421 per metric tonne.

Sentiment among Chinese traders weakened after reports that China asked another state-owned investment firm to look at the books of China Huarong Asset Management, said Anna Stablum of brokerage firm Marex.

China Huarong has been the subject of concerns since it missed the deadline for reporting results at the end of March. This has fueled speculation the company may be on the verge of default, Stablum said.

Data under review this week will be US consumer confidence on Tuesday, followed by the Chinese manufacturing PMI and US employment data later in the week.

   
 
 

MAIN FOCUS EMEA

Macron and Le Pen stumble in regional elections in France amid resurgence of establishment parties

PARIS – The centrist ranks of President Emmanuel Macron and the far-right Marine Le Pen party both failed to win in the French regional elections on Sunday as voters turned to establishment candidates in the middle tensions created by recent terrorist attacks and the place of Islam in society.

Conservative candidates campaigning on anti-immigration and law enforcement pledges won seven regional presidencies across France while the Socialist Party won the remaining five.

   
 
 

Swedish Prime Minister resigns

STOCKHOLM – Swedish Prime Minister Stefan Lofven resigned on Monday in what he called the most difficult political decision he has ever made.

Having lost the support of the country’s Left Party – whose support to govern it he responded to – on proposals to abolish controlled rents in new housing, the Prime Minister lost a vote of no confidence last week.

   
 
 

US conducts airstrikes in Syria and Iraq against Iranian-backed militias

WASHINGTON – The United States carried out airstrikes in Syria and Iraq against two Iranian-backed militias that the Pentagon said were carrying out drone attacks against American troops.

The Pentagon said operational and weapons storage facilities were struck near the Syrian-Iraqi border at three locations it said were used by the Kata’ib Hezbollah and Kata’ib Sayyid al-Shuhada militias .

   
 
 

Binance Crypto Exchange must cease operations in UK

British and Japanese authorities have targeted subsidiaries of Binance Holdings Ltd., the world’s largest cryptocurrency exchange, in the latest regulatory crackdown on the hugely popular trade in bitcoin and other digital assets. .

The UK’s Financial Conduct Authority, the country’s main financial regulator, told consumers on Saturday that Binance’s local unit was not authorized to conduct transactions related to regulated financial activities.

   
 
 

How a beer giant is dealing with waves of Covid-19 around the world

At the end of March, the managers of the world’s largest brewer were working on a project they called EU-phoria.

The UK was due to reopen outdoor restaurants in a few weeks, followed by much of Europe. Data scientists from Anheuser-Busch InBev SA predicted that beer sales would increase as people reunite with friends and family after months of lockdown.

   
 
 

Israel’s Delta variant epidemic infects some vaccinated adults

TEL AVIV-About half of adults infected in an outbreak of the Delta variant of Covid-19 in Israel have been fully inoculated with the Pfizer Inc. vaccine, prompting the government to reimpose an indoor mask requirement and other measures to contain the highly transmissible strain.

Preliminary results from Israeli health authorities suggest that around 90% of new infections are likely caused by the Delta variant, according to Ran Balicer, who heads an expert advisory group on Covid-19 for the government. Children under 16, most of whom have not been vaccinated, make up about half of those infected, he said.

   
 
 

Malta, Philippines placed on Terrorist Financing Watchlist

Four jurisdictions, including Malta and the Philippines, will come under increased scrutiny as they face pressure from a global watchdog to address shortcomings in their anti-money laundering efforts.

(MORE TO FOLLOW) Dow Jones Newswires

June 28, 2021 06:16 ET (10:16 GMT)

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