The Australian share market has snapped its six day winning streak and is broadly lower in morning trade.
Weaker than expected earnings in both US and European markets provided negative leads with some Aussie investors using the recent bounce to banks some gains.
The S&P/ASX 200 index is 57 points down at 5,649. On the futures market the SPI is 53 points lower.
Economic news
The ABS has reported a sharp jump in the consumer price index. June qtr CPI was up 0.7 per cent in the June qtr compared to a 0.2 per cent rise the previous quarter. The yearly gain was 1.5 per cent compared with a 1.2 per cent rise in the 12 months to the March quarter. Petrol prices were the main driver up over 12 per cent in the past 3 months.
Company news
Boral Limited
(ASX:BLD) says that strong earning in June and higher than expected property sales will propel full year net profit to between $240 to $250 million. Pre-tax property earnings should come in at around $46 million and earning across the company’s other divisions should be in line with previous guidance. Shares in Boral are clocking their seventh straight day of gains up 1.57 per cent to $6.46 so far today.
Novogen Limited
(ASX:NRT) says its CEO Dr Graham Kelly is resigning immediately and returning to non-oncology based research. The company is on track to enter 3 potential drugs to Phase 1 clinical trials over the next two years. The company will make a further announcement regarding his replacement soon. Shares in Novogen are trading down 8.51 per cent at $0.21.
Best and worst perfomers
All sectors are down in morning trade, the sector with the least losses is energy down 0.7 per cent to 10,849. Shares in Whitehaven Coal have risen 1.15 per cent and trading at $1.32. Shares in Drillsearch Energy and Worleyparsons are also stronger.
The worst performing sector is financials excluding reits, falling 1.1 per cent to 6,609. Shares in QBE Insurance have fallen 2.9 per cent, trading at $14.42. Shares in Perpetual and Westfield are also lower.
Gold and the dollar
Gold is trading at $US1,098 an ounce.
The Australian dollar is buying 74.30 US cents.
