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Global stocks fell on Monday after a better-than-expected U.S. jobs report on Friday, while the euro also fell after French President Emmanuel Macron dissolved the National Assembly following a major gain by the far-right in Sunday’s parliamentary elections.
The euro fell to its lowest level against the dollar in nearly a month, falling to $1.0766 from $1.0778.
The ruling party’s election setback sent stock markets lower in the region. In early trading, the Paris CAC 40 index fell 1.7% to 7,866.87 points, Germany’s DAX index fell 0.7% to 18,425.26 points, and the UK’s FTSE 100 index fell 0.4% to 8,215.84 points.
U.S. futures also fell, with S&P 500 futures down 0.1% and Dow Jones Industrial Average futures down 0.2%.
Asian stocks were mixed. Tokyo’s Nikkei 225 rose 0.9% to 39,038.16 after the government released revised data showing Japan’s economy contracted at an annualized rate of 1.8% in the first quarter, slightly better than the previously reported 2% decline. South Korea’s Kospi fell 0.8% to 2,701.17. Stocks in China, Hong Kong, Australia and Taiwan were closed for holidays.
On Friday, the S&P 500 fell 0.1%, the Nasdaq Composite fell 0.2% and the Dow Jones Industrial Average fell 0.2%.
The U.S. jobs report for May showed employers added 272,000 jobs, beating economists’ expectations, even as the unemployment rate rose for a second straight month. The strong job market supports consumer spending and the overall economy, but also complicates the Federal Reserve’s interest rate decisions.
“We are back to the starting point View “It’s hard for the Fed to justify cutting rates when employment data remains strong and inflation is not falling as fast as it should,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The 10-year Treasury yield rose to 4.43% from 4.29% after the jobs report, while the two-year Treasury yield, which closely tracks Fed expectations, rose to 4.89% from 4.74%.
Recent economic data have suggested the economy is cooling, with manufacturing shrinking in May, worker productivity falling short of expectations and job openings falling.
Federal Reserve officials are expected to keep interest rates unchanged at their meeting later this week. Investors reduced their holdings after the jobs report bet The rate cut came in July, according to data from the Chicago Mercantile Exchange Group.
Wall Street has been closely watching retailer earnings for signs that consumers are cutting back on discretionary items. Persistent inflation is weighing on consumer spending, especially among lower-income households.
GameStop, the troubled video game The retailer at the center of the meme stock craze fell 39.4% after reporting another quarterly loss and announcing plans to sell up to 75 million shares.
Elsewhere in markets, benchmark U.S. crude fell 18 cents to $75.35 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 11 cents to $79.51 a barrel.
The dollar rose slightly against the yen from 156.83 to 156.86 yen.
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