The market is down 32. ASX 200 Futures were up 3 this morning. The Dow Jones finished up 80 on mixed economic data. The Dow was down 116 at worst and closed on its high of the day.

US weekly jobless claims fell by 6500 to 346,000 in the final week of May just missing the forecast of 345,000. Continuing claims were better than the previous reading and the forecast. Net financial wealth grew by $3 trillion to $70.3 trillion — the biggest quarterly increase in 14 years.

The ECD decided to leave interest rate unchanged at 0.50% as expected. European Central Bank President Mario Draghi said further stimulus measures will be left “on the shelf” as growth returns. European bond yields up. The BOE decided to leave interest rate unchanged at 0.50% as expected.

France’s unemployment rate was up 0.3% to 10.8% for the first quarter, beating expectation of 10.9%.

ANNOUNCEMENTS & STORIES

  • NEXTDC (NXT) — Has entered into a contract for the provision of data centre services to a leading corporation for 5 years. The customer’s initial minimum commitment represents estimated revenue of $60 million excluding electricity recharges. This initial commitment brings forward the company’s  operating break-even and accelerates the planned fit out of additional capacity. NXT is up 12.99% to 261c.
  • Newcrest Mining (NCM 1336c) — Business review — The NCM board have completed a review of the company’s business plan and 2014 budget. Newcrest is cutting jobs and closing its Brisbane office in response to falling gold prices. NCM is down 8.83% to 1218c.
  • Lynas Corp (LYC) — Has given an operations update. The company has said it will cut costs further falls in Rare Earth’s prices. The company recently began production at its refinery in Malaysia but  said the plant would operate at a reduced capacity due to subdued demand. LYC is up 3.33% to h54.25c.
  • Dow Jones Indices announced today the changes in the S&P/ASX indices.
    • S&P/ASX 20 Index — No change
    • S&P/ASX50 Index –– APA added. LEI removed.
    • S&P/ASX 100 Index — HGG added. PRU removed.
    • S&P / ASX 200 Index — AHE, DMP, GEM, LNC, REA, SIR added. IMD, MAD, MBN, TRY removed.
    • S&P / ASX All Australian 50 Index — APA added. LEI removed.
    • S&P / ASX All Australian 200 Index — AHE, DMP, FGE, GEM, LNC, REA, SGN added. AIX, BTU, GBG, GRY, MAD, SAR, TRY removed.
    • Official US jobs numbers tonight are a major focus. The consensus is a gain of 165,000 jobs with the unemployment rate expect to stay unchanged at 7.5%. They also have consumer credit numbers.

Peter Fray

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