Following sharply negative leads from all global markets, the Australian share market went straight into a tailspin on open and is currently 1.78 per cent down at noon.
The S&P/ASX 200 index is 103 points down at 5,348. On the futures market the SPI is 102 points lower.
Economic news
Good news from trade deficit numbers has sent the Aussie dollar back above 81 cents. The ABS reports that the November trade figures showed exports for the month were worth $27.1 billion, leaving a gap of just 925 million, well below expectations of a $1.6 billion deficit.
The ANZ- Roy Morgan weekly consumer confidence index has lifted 1.4 per cent to 111.7 in the past week. The number is still below the November levels despite increased spending at Christmas. Economists say that the lower petrol price should start to have an impact on confidence soon.
Company news
Seymour Whyte Limited
(ASX:SWl) says that its latest deal with the Queensland Government takes its forward order book out past $450 million. The latest contract, to upgrade the Warrego Highway between Nugent Pinch Road and Charlton in the Darling Downs, is worth $43 million and follows a number of successful flood reconstruction projects the group has delivered in the area. The project is due to start in the next couple of months. Shares in Seymour Whyte advanced 1.23 per cent to $1.64.
Qantas Airways Limited
(ASX:QAN) is one of the only winners in a sea of losers in todays morning trade. The airline has bounced higher yet again on falling oil prices after overnight futures slipped below the $US50 mark, a new psychological threshold for the market. Experts are now predicting oil could sink as low as $US30 a barrel leaving plenty of upside for the Australia’s largest airline. Shares in Qantas have lifted 3.6 per cent to $2.59.
Best and worst performers All sectors are down in morning trade, the sector with the least losses is staples, dipping 1.1 per cent to 9,028. Shares in Treasury Wine Estates have risen 0.63 per cent and are trading at $4.76. Shares in Goodman Fielder and Asaleo Care are flat.
The worst performing sector is energy, sinking 5.4 per cent to 11,112. Shares in Santos have fallen 7.99 per cent, trading at $7.60. Shares in Oil Search and Sundance Resources are also lower.
Gold and the dollar
Gold is trading at $US1,203 an ounce.
The Australian dollar is buying 81.17 US cents.
