European indices are falling amid the first results of the EU parliamentary elections. Silver prices fell below $30 per ounce

The US nonfarm payrolls for May rose by 272,000, exceeding expectations of 180,000. The unemployment rate unexpectedly rose by 0.1 to 4.0% in May versus expectations of no change at 3.9%. The US average hourly labor compensation in May added 0.4% m/m and 4.1% y/y, which is stronger than expectations of 0.3% m/m and 3.9% y/y. Markets are pricing in a 25 bps chance of a 1% rate cut at the June 11–12 FOMC meeting and a 9% chance of a rate cut at the next meeting on July 30–31.

European stock markets opened lower on Monday as early results from EU parliamentary elections suggest right-wing populist parties could shape European politics for the next five years. French President Emmanuel Macron has also called for snap parliamentary elections later this month after a heavy defeat in the EU vote.

Oil (WTI) prices came under pressure on Friday as strong US jobs data prompted traders to cut expectations for a US rate cut, dampening the outlook for economic growth and energy demand. Demand for precious metals also declined as the US Central Bank ended a series of gold purchases, which had been one of the key triggers for the strong performance of this asset class this year. At the same time, the US imposed 50% tariffs on Chinese imports of solar panels, which is one of the largest industries for silver, putting pressure on panel production at key plants in Asia with corporate bases in China.

Silver prices (XAGUSD) fell to below $29.4 an ounce, retreating sharply from an 11-year high of $32 reached on May 28 and following a general decline in bullion prices as strong US economic data supported the Federal Reserve’s hawkish outlook.

Asian markets were equally up and down last week. Japan’s Nikkei 225 (JP225) decreased by 0.13%, China’s FTSE China A50 (CHA50) lost 0.62%, Hong Kong’s Hang Seng (HK50) was up 0.46%, and Australia’s ASX 200 (AU200) was positive 2.06%.

Government officials searched the Tokyo headquarters of Honda Motor Co. on Monday. Japanese media report that raids will soon be conducted at Mazda Motor Corp. Toyota and Suzuki Motor Corp. have already been searched. Toyota Chairman Akio Toyoda apologized last week for widespread fraud involving the use of inadequate or outdated data in collision tests, improper testing of airbag inflation, rear-seat damage in crashes, and engine power.