S&P/ASX 200 trims early losses as employment, output rise above pre-pandemic levels

S&P/ASX 200 (INDEXASX:XJO) has trimmed its losses from earlier in the day after the release of better-than-expected jobs figures, but the index is still down 0.14% at 7376 points by about 1.05 pm. Australia’s unemployment rate fell from 5.5% to 5.1% in May, with employment increasing by a surprising 115,000 people compared to April. RBI Governor Philip Lowe added to the optimistic numbers in a keynote address at the Australian Farm Institute Conference: “Today, the level of employment in Australia is above its pre-pandemic level. “Australia and New Zealand are the only advanced economies where this is the case. “In the United States, employment is still nearly 5 per cent below the pre-pandemic level and in Spain it is 3 per cent below. “The GDP data also paint a positive picture of the recovery, which has been V-shaped. “The level of output in Australia is now above its pre-pandemic level; not many other countries are in this same position. “The bounce-back has been quicker and stronger than was widely expected; back in August we did not expect the previous level of output to be regained before the first half of 2022, yet here we are already.” Inflation expectation rises The US Federal Reserve on Wednesday considerably raised its expectations for inflation this year and brought forward the time frame on when it will next raise interest rates. Fed officials indicated that rate hikes could come as soon as 2023, after saying in March that it saw no increases until at least 2024. Though the Fed raised its headline inflation expectation to 3.4%, a full percentage point higher than the March projection, the post-meeting statement said that inflation pressures are “transitory.” However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program, though Fed Chairman Jerome Powell said: “You can think of this meeting that we had as the ‘talking about talking about’ meeting”. Top gainers Today’s top gainers on the ASX include Arrow Minerals Ltd (ASX:AMD) (+16.67%), Lake Resources N.L. (ASX:LKE) (+13.70%), Platina Resources Limited (ASX:PGM) (+14.71%), PVW Resources NL (ASX:PVW) (+6.67%) and Corazon Mining Ltd (ASX:CZN) (+6.25%). Proactive news headlines: Blackstone Minerals begins 'green' hydrogen study as part of zero-carbon aim for Ta Khoa Nickel-Copper-PGE Project Blackstone Minerals Ltd (ASX:BSX) (OTCMKTS:BLSTF) (FRA:B9S) has begun a 'green' hydrogen study, the first of several initiatives being considered as part of plans to develop a zero-carbon mining operation and downstream processing facility at the flagship Ta Khoa Nickel-Copper-PGE Project in Vietnam. Great Boulder Resources expands large Mulga Bill gold system with more high-grade results Great Boulder Resources Ltd (ASX:GBR) has identified a large intrusion-related gold system through further high-grade results from reverse circulation (RC) holes at Mulga Bill prospect within the Side Well Gold Project in Western Australia. Predictive Discovery intercepts broad gold zones in resource drill-out at Bankan Creek and NE Bankan Predictive Discovery Ltd (ASX:PDI) has received further encouraging results from Bankan Gold Project in Guinea with eight reverse circulation (RC) holes and one diamond drill (DD) hole for a total of 1,182 metres producing broad mineralised intersections. Euro Manganese implements CEO succession plan as it transitions to an operating company Euro Manganese Inc (ASX:EMN) (CVE:EMN) (OTCMKTS:EUMNF) (FRA:E06) is implementing a CEO succession plan in line with its transition from a development company to an operating company. Matador Mining secures new ground at Newfoundland gold asset following phase one heli-mag survey Matador Mining Ltd (ASX:MZZ) (OTCMKTS:MZZMF) (FRA:MA3) is nearly finished phase one of its high-resolution heli-mag survey over the Cape Ray Gold Project that has added to the Canadian project's high-grade potential. Corazon Mining targets large porphyry system as drilling starts at Mt Gilmore Copper-Cobalt-Gold Project Corazon Mining Ltd (ASX:CZN) (OTCMKTS:CRZNF) has started drilling at Mt Gilmore Copper-Cobalt-Gold Project in New South Wales, targeting the 8-kilometre long Gordonbrook Hill-May Queen copper-cobalt-silver-gold anomaly within the 20-kilometre long Mt Gilmore Trend. PNX Metals tables positive PFS supporting long-term gold, silver, zinc project development PNX Metals Ltd's (ASX:PNX) positive pre-feasibility study (PFS) outlines the technical and financial payoff involved with bringing its Fountain Head gold and Hayes Creek gold-silver-zinc projects into production. Gascoyne Resources to merge with Firefly to create Murchison region gold business Gascoyne Resources Ltd (ASX:GCY) and Firefly Resources Ltd (ASX:FFR) have entered into a binding scheme implementation deed that will see the two companies merge by way of a scheme of arrangement.