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U.S. stock futures brush off U.K. terror attacks as busy week kicks off

U.S. stock futures slipped slightly early Monday, as investors
looked past a fresh terror attack in the U.K. to potentially
market-moving events later in the week, and as oil prices rose
on a rift among Gulf states.

This week will deliver testimony by Federal Bureau of
Investigation Director James Comey, as well as the U.K. general
election and a European Central Bank meeting.

Dow Jones Industrial Average futures

YMM7,
-0.03%

 slipped 6 points to 21,197, while S&P 500
futures

ESM7,
-0.04%

 eased 1.2 points to 2,436.50. Nasdaq-100
futures

NQM7,
-0.07%

 dropped 4.25 points to 5,881.50.

On Friday, the three major indexes closed at records for a
second straight session, as investors
brushed aside a weaker-than-expected May jobs report. The
S&P 500

SPX,
+0.37%

 rose 1% for the week, the DJIA

DJIA,
+0.29%

 gained 0.6%, and the Nasdaq Composite Index

COMP, +0.94%

 surged 1.5%.

The FTSE 100 index

UKX, -0.18%

 and European stocks fell at the start of trading on Monday,
as the British pound

GBPUSD, +0.0853%

  slipped after Saturday evening’s terror
attack
near London Bridge. Three assailants in a van mowed
down pedestrians, then went on a knife rampage in Borough
Market. Seven people died and dozens were injured, 21
critically.

Read: Police arrest 12 in London raids after terror
attack

The terror incident comes just days ahead of the U.K. election
on Thursday. Investors will watch to see whether Prime Minister
Theresa May’s Conservative Party, which is looking for backing
for its strategy for exiting the European Union, will manage to
keep its majority in parliament. The vote could lead to more
uncertainty over Brexit.

Read: U.K. election — the worst, best and most
likely scenarios for stocks worldwide

And see: 5 things to know about the U.K. general
election this week

Gulf rift: Oil prices

CLN7, +0.55%

  pared a gain of more than 1% seen earlier
in the European session and in Asian trading. The rise was
driven by news that Saudi Arabia, Egypt, Bahrain and the United
Arab Emirates had cut relations with Qatar after accusing the
country of interfering in internal affairs and
supporting terrorism
.

That news left the Qatar QE index down more than 7% on Monday.

Economic docket: A revision to first-quarter
productivity numbers, along with unit labor costs for the same
period, is due at 8:30 a.m. Eastern Time. The final Markit
services purchasing managers’ index for May is due at 9:45 a.m.
Eastern.

That’s followed at 10 a.m. Eastern by the May update of the
Institute for Supply Management’s nonmanufacturing index, with
a reading on factory orders for April due at the same time.

A turbulent week ahead: The U.K. election is
just one of three key events expected on Thursday.

Former FBI head Comey, who was fired by U.S. President Donald
Trump last month, is due to testify before the Senate
Intelligence Committee on Russia’s role in the U.S.
presidential election on Thursday. Of key interest will be
comments by Comey as to whether he was pressured to drop a
probe into possible collusion between the Trump campaign and
Russian officials.

See: Top Democrat says there’s smoke, but ‘no
smoking gun’ yet in Russia probe

And check out: Trump weighing whether to block Comey
testimony to Senate

A European Central Bank meeting in Talinn, Estonia is scheduled
on the same day. Investors will be watching to see if the
central bank offers any clues about when it will begin tapering
its stimulus program.

In addition, stocks are entering a traditionally turbulent
period, with Bespoke Investment noting that equities tend to
fall around 0.79% in the two-week span between May 30 and June
13.

Read: Stock market bracing for potentially the
stormiest stretch of trading this year

Other markets: Gold prices

GCQ7,
+0.28%

 inched higher.

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