Producers of metals and other raw materials retreated amid downbeat Chinese economic data.
China's exports and imports in May grew less than the market expected, though they expanded strongly compared with the same period a year earlier due to lower bases.
"Some of the optimism was dialed back following China trade data," IG analysts said. "Monday is another empty day from a macro perspective, leaving markets searching anew for catalysts," they added.
A recent run-up in commodity prices is casting a cloud over the global economic recovery, slamming vulnerable businesses and households and adding to fears that inflation could become more persistent.
Economists are expecting consumer-price data due later this week to underscore the trend. They say China's producer-price index, a gauge of factory-gate prices, could climb to its highest level since August 2008 on Wednesday amid rising commodity prices.
The U.S. consumer-price index, released a day later, is expected to show a sharp rise in the 12 months through May, also driven by higher labor costs.
So far, the Federal Reserve has indicated that it won't tighten monetary policy until there is substantial further progress on the recovery. Signs of further price increases could change that calculus, though.
In corporate news, Nucor announced an agreement to pay $1 billion in cash for the insulated metal panels business of Cornerstone Building Brands.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
06-07-21 1658ET
