Following positive leads from US markets, the Australian share market is continuing yesterday’s rally opening strongly higher in morning trade to be 0.83 per cent up at noon.
Investors are awaiting China GDP figures later today with some analysts predicting the continued slowdown in China’s economic growth could push global markets into recession.
The S&P/ASX 200 index is 48 points up at 5,625. On the futures market the SPI is 51 points higher.
Economic news
The Westpac-Melbourne Institute monthly read on consumer sentiment has plunged 3.2 per cent to 92.2. Concerns over instability in Europe along with recent events in China are hitting consumer confidence hard.
Company news
BHP Billiton Limited
(ASX:BHP) says it will carry an impairment charge of around US$2 billion against its onshore US assets in its 2015 full year results. The write down is due to the sinking oil price rendering the Hawkville gas field unviable and an impairment of goodwill associated with the Petrohawk acquisition. Shares in BHP are trading down 1.62 per cent at $26.66.
Infigen Energy Limited
(ASX:IFN) will offload it’s US wind business for $365 million to an American private equity firm. The deal follows last month’s sale of Infigen’s solar development assets in the US. Infigen will use the money to pay down global debt. Shares in Infigen Energy are trading up 5.08 per cent at $0.31.
Best and worst performers
The best performing sector is energy, gaining 2.2 per cent to 10,982. Shares in AWE have risen 5.04 per cent and are trading at $1.35. Shares in Karoon Gas and Beach Energy are also stronger.
The only sector showing losses is materials, falling 0.1 per cent to 8,715. Shares in Oz Minerals have fallen 5.56 per cent, trading at $3.74. Shares in Fortescue and BHP Billion are also lower.
Gold and the dollar
Gold is trading at $US1,156 an ounce.
The Australian dollar is buying 74.51 US cents.
