ASX up 0.59% as economy experiences loss of jobs

Market Reports

by Peter Milios

According to the Australian Bureau of Statistics, the economy experienced a loss of 4,300 jobs in the previous month, which was contrary to economists' predictions of gaining 25,000 positions. Moreover, the jobless rate unexpectedly increased to 3.7 per cent, failing to meet the forecast of remaining steady at 3.5 per cent. Additionally, the participation rate declined by 0.1 percentage point, reaching 66.7 per cent.

At noon, the S&P/ASX 200 is 0.59 per cent higher at 7,242.

The SPI futures are pointing to a rise of 43 points.

Best and worst performers

The best-performing sector is Information Technology, up 2.85 per cent. The worst-performing sector is Consumer Discretionary, down 0.46 per cent.

The best-performing large cap is Xero (ASX:XRO), trading 7.82 per cent higher at $101.46. It is followed by shares in Mercury NZ (ASX:MCY) and Mineral Resources (ASX:MIN).

The worst-performing large cap is Aristocrat Leisure (ASX:ALL), trading 4.64 per cent lower at $37.42. It is followed by shares in Infratil (ASX:IFT) and ResMed (ASX:RMD).

Asian news

Asia-Pacific markets rose on hopes of US President Joe Biden and congressional leaders inching closer to a deal to raise the US debt ceiling and avoid a default.
House Speaker Kevin McCarthy said that a “better process” is now in place for further talks, saying it’s “possible to get a deal by the end of the week.” Biden shortened his trip to Asia to focus on the negotiations, the White House said.

In Japan, the Nikkei 225 rose 1.3 per cent and the Topix was up 0.86 per cent as investors further digested Japan’s trade data for April – imports fell further than expected while exports also missed forecasts by Reuters. South Korea’s Kospi gained 0.43 per cent and the Kosdaq gained 0.21 per cent in Asia’s morning trade.

Company news

Latin Resources (ASX:LRS) announced that drilling confirms that their Colina deposit has lithium pegmatites extending over 2km. VP of Operations, Tony Greenaway commented: “We will now move some rigs to start testing to expand the deposit through systematic step-out to the southwest.” Shares are trading 2.63 per cent lower at 18.5 cents.

European Metals (ASX:EMH, AIM:EMH, OTCQX: EMHXY, ERPNF and EMHLF) announced that the Czech Republic Prime Minister, Petr Fiala, has visited their lithium deposit, Cinovec Project, and looks to enhance cooperation on strategic projects, including Cinovec. Executive Chairman Keith Coughlan said, “These developments highlight the strategic importance of our project to the region and to the broader European Union.” Shares are trading 6.72 per cent higher at 63.5 cents.

Golden Mile Resources' (ASX:G88) review has identified 3 exciting untested high priority gold targets for drilling at their Gold and Base Metal Project in WA. Shallow broad spaced aircore and historical RAB drilling encountered favourable geology with widespread gold anomalism demonstrating that it is a highly prospective gold setting. Shares are trading 22.2 per cent higher at 2.2 cents.

Immutep (ASX:IMM, NASDAQ:IMMP) was up almost 65 per cent in the US markets overnight after the company stated that their products achieved robust initial overall survival in first line non-small cell lung cancer patients in a Phase 2 trial. Immutep said this immuno-oncology investigational combination, without the use of chemotherapy, led to excellent initial survival results. Shares are trading 31.5 per cent higher at 35.5 cents.

Commodities and the dollar

Gold is trading at US$2005.90 an ounce.
Iron ore is 2.4 per cent higher at US$111.00 a tonne.
Iron ore futures are pointing to a 1.97 per cent rise.
One Australian dollar is buying 66.46 US cents.

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