Midday: ASX swings back into the black

Market Reports

Gains on Wall Street overnight flowed onto the ASX to support a minor recovery from some major losses over the week. The SPI has flipped from negative to positive this morning and at midday the local bourse was 0.7 per cent higher. 
 
Energy stocks took a beating this morning as the oil price retreated from the $US60 mark while the banks recovered with Macquarie Group booking gains on strong full year profit growth. 
 
The RBA has forecast a lower growth outlook for the Australian economy as part of its Statement of Monetary Policy. The central bank says the local economy will grow at below trend pace for longer than anticipated. 
 
The S&P/ASX 200 index is 41 points up at 5,686. On the futures market the SPI is 34 points higher. 
 
Company news
 
Bendigo and Adelaide Bank Limited (ASX:BEN) will follow BOQ and the big four banks to lower its mortgage rate, the variable home loan rate will drop 0.2 per cent to 5.56 per cent. Managing Director Mike Hirst says the bank considers many factors when setting rates, taking into account the needs of all stakeholders. Mr Hirst notes the challenges the decrease will cause for deposit holders and says the banks strives to strike the right balance between borrowers and depositors. Shares in Bendigo Bank are trading up 1.74 per cent at $12.28
 
Medical Developments International Limited (ASX:MVP) has its eye on further global expansion after landing European approval for the sale of Penthrox earlier in the week. The Australian medical company says approval in the UK, France, Belgium and Ireland validates the company’s pain relief product as world class. The company will now push its Regulatory Dossier into Russia, Saudi Arabia, Israel, Singapore and other countries, while progress into the US may require further clinical trials. Shares in MVP are trading up 1.63 per cent at $2.49
 
Best and worst performers

The best performing sector is REITs, gaining 2 per cent to 1,276. Shares in Scentre Group Limited (ASX:SCG) have risen 3.12 per cent and trading at $3.81. Shares in Charter Hall Group (ASX:CHC) and Westfield Corp (ASX:WFD) are also stronger.
 
The worst performing sector is energy, falling 2 per cent to 11,515. Shares in Sundance Energy Australia Limited (ASX:SEA) have fallen 4.58 per cent, trading at $0.63. Shares in Santos Limited (ASX:STO) and Woodside Petroleum Limited (ASX:WPL) are also lower.
 
Gold and the dollar

Gold is trading at $US1,183 an ounce.
The Australian dollar is buying $US0.7874

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