The local market followed offshore leads higher on open this morning but this was soon reversed and the ASX was down 0.8 per cent, but by midday there was improvement to a loss of 0.4 per cent.
Losses were led by the utilities sector, while Metcash sunk more than 16 per cent on news of write downs and dividend cut.
The ABS released both international trade figures and retail figures today and both came in worse than forecasters had expected.
The S&P/ASX 200 index is 23 points down at 5,561. On the futures market the SPI is 27 points lower.
Economic news
The ABS says the trade deficit has grown by 216 per cent in April to come in at $3.88 billion, well above analysts expectations. Exports are down 6 per cent while imports were up by 4 per cent. Also coming from the ABS were retail sales figures which showed a flat read for April with sales of $24 billion.
Company news
Eureka Group Holdings Limited
(ASX:EGH) has acquired three regional villages in a deal worth $6.6 million. The company says the villages in Albury, Mildura and Shepparton have been bought from Ingenia Communities. Following completion of these three villages, Eureka will have acquired a total of 10 villages since April last year. Shares in Eureka are trading flat at $0.54.
Shares in Virgin Australia Holdings Limited
(ASX:VAH) have pushed higher on news its continued alliance with Delta has received draft approval from the ACCC. The airline says its trans-Pacific alliance with Delta air would be reauthorized for a further five years under the deal. CEO John Borghetti says approval would boost tourism and bring strong competition to trans-pacific travel. Shares in Virgin Australia are trading up 1.09 per cent at $0.47
Best and worst performers The best performing sector is health care, gaining 0.1 per cent to 18,552. Shares in Virtus Health Limited
(ASX:VRT) have risen 2.64 per cent and trading at $5.84. Shares in Greencross Limited
(ASX:GXL) and Japara Healthcare Limited
(ASX:JHC) are also stronger.
The worst performing sector is utilities, falling 1.4 per cent to 6,645. Shares in APA Group
(ASX:APA) have fallen 2.21 per cent, trading at $8.87. Shares in DUET Group
(ASX:DUE) and AGL Energy Limited
(ASX:AGL) are also lower.
Gold and the dollar
Gold is trading at $US1,184 an ounce.
The Australian dollar is buying $US0.7717
