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Futures, Stocks Struggle With Jobs Data in View: Markets Wrap

(Bloomberg) — Stocks in Europe struggled for direction along with U.S. futures on Monday as traders await fresh catalysts, with the key American jobs data later this week set to provide further clues on the outlook for the biggest economy.

The Stoxx Europe 600 index fluctuated before edging lower. Spain’s Endesa SA dragged the utilities sector down following reports the Spanish government is preparing to rein in windfall profits for power producers. Deutsche Bank AG dropped after the Federal Reserve warned that its compliance programs aren’t adequate. U.K. markets are closed for a holiday.

Contracts on the S&P 500 and Nasdaq 100 swung between small gains and losses amid shortened trading hours due to the Memorial Day holiday in the U.S. The dollar was steady against a basket of peers. There’s no Treasuries cash trading today, after the 10-year yield closed just below 1.6% on Friday.

Crude oil climbed as the market focused on an OPEC+ supply policy meeting early this week, while gold headed for the biggest monthly advance since July and most industrial metals gained.

Global stocks remain near a record, lifted by the ongoing economic recovery from the pandemic and injections of stimulus. The rally has so far weathered concerns that price pressures could force an earlier-than-expected reduction in central bank support. But investors remain sensitive to the risk, and Friday’s U.S. non-farm payrolls report could buffet markets if it changes perceptions of the rebound’s strength.

“Policy makers have committed to accepting a higher level of inflation, higher volatility in inflation and as that happens you will see inflation moving structurally higher,” Mixo Das, JPMorgan Asia equity strategist, said on Bloomberg TV. “I don’t think this is in the prices yet.”

The offshore yuan stabilized in the wake of comments leaning against its climb. Two state-run newspapers flagged risks fueled by rapid gains in the currency. China also set its daily reference rate at a weaker-than-expected level.

Bitcoin climbed above $36,000 after a Friday slump as Bank of Japan Governor Haruhiko Kuroda warned about the token’s volatility and speculative trading.

Here are key events to watch this week:

U.S. markets will be closed Monday for the Memorial Day holiday. U.K. markets will be closed for the Spring Bank holidayReserve Bank of Australia policy decision TuesdayOPEC+ meets to review oil production levels TuesdayPhiladelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak WednesdayU.S. employment report for May on Friday

These are some of the main moves in markets:


Futures on the Nasdaq 100 were little changed as of 8:40 a.m. New York timeFutures on the S&P 500 were unchangedThe Stoxx Europe 600 fell 0.1%The MSCI World index was little changed


The Bloomberg Dollar Spot Index fell 0.1%The euro was little changed at $1.2201The British pound was little changed at $1.4185The Japanese yen rose 0.2% to 109.66 per dollar


Germany’s 10-year yield advanced one basis point to -0.17%Britain’s 10-year yield declined two basis points to 0.79%


West Texas Intermediate crude rose 1.5% to $67 a barrelGold futures rose 0.2% to $1,909 an ounce

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