Despite positive leads from the US and a surge in the iron ore price the Australian share market is reacting to news of a capital raising by ANZ and selling the banks down sharply to be 0.78 per cent down at noon.
The S&P/ASX 200 index is 41 points down at 5,633. On the futures market the SPI is 44 points lower.
Economic news
The ABS says unemployment has risen to 6.3 per cent in July, up from 6.1 per cent in June. The long term unemployment rate remains at 6.1 per cent. The ABS also reported 38,500 new jobs were created in July, most of them part-time jobs.
Company news
FlexiGroup Limited
(ASX:FXL) says that CEO Tarek Robbiati will finish up with the firm tomorrow and CFO David Stevens and COO Peter Lirantzis will lead the company until a replacement CEO is found. Shares in FlexiGroup are trading 2.19 per cent at $3.13.
Bargain hunters are snapping up Cash Convertors International
(ASX:CCV) back out of a trading halt following yesterday’s news that Westpac will pull funds from customers who provide pay day loans. Westpac will honour the $59 million debt facility still in place. However no further finance will be forthcoming after a class action was served on the payday lender regarding alleged breaches of practice in Queensland. Shares in Cash Convertors are trading 6.36 per cent higher at $0.58.
Best and worst performers
The best performing sector is materials, gaining 0.7 per cent to 8,638. Shares in Northern Star have risen 3 per cent and are trading at $2.06. Shares in Newcrest and Arrium are also stronger.
The worst performing sector is financial excluding REITS, falling 1.5 per cent to 7,572. Shares in Genworth Mortgage Insurance have fallen 9.83 per cent, trading at $3.17. Shares in Westpac and Commbank are also lower.
Gold and the dollar
Gold is trading at $US1,085 an ounce.
The Australian dollar is buying 73.43 US cents.
