Midday: Aus shares 0.97% higher at noon

Market Reports

Following positive leads, the Australian share market opened higher and is 0.97 per cent up at noon. Resources stocks have followed a strong overnight gain in oil prices to lead a broad rally in the morning session. Investors will now turn their focus to the RBA’s monthly meeting this afternoon.
 
The S&P/ASX 200 index is 50 points up at 5,200. On the futures market the SPI is 44 points higher. 
 
Economic news

Australia’s trade deficit was recorded at $3.1 billion for August, according to the ABS. 
 
Company news
 
Affinity Education Group Limited’s (ASX:AFJ) application to the Australian Government Takeovers Panel pertaining to takeover bids made by G8 Education Limited has resulted in a declaration of unacceptable circumstances. The declaration relates to the share-buying activities of G8 Education Limited, JB Super Fund Pty Limited, Taxonomy Pty Limited and West Bridge Holdings Pty Limited. The Panel highlighted family links between G8 chairwoman Jenny Hutson and the owner of JB Super in its reasoning. Shares in Affinity Education Group Limited are trading down 0.28 per cent at $0.90. 
 
Treasury Wine Estates (ASX:TWE) continues to eye cost cuts as it commences the second phase of supply chain optimisation. The winemaker expects to deliver an annualised Cost of Goods Sold (COGS) benefit of approximately $30 million per annum by fiscal 2020 via measures to optimise facility utilisation and returns on under-performing vineyards. Shares in Treasury Wine Estates are trading up 0.9 per cent at $6.71. 
 
Best and worse performers

The best performing sector is Materials, gaining 1.99 per cent to 8,124. Shares in Alumina have risen 5.65 per cent and are trading at $1.22. Shares in South32 and Western Areas are also stronger. 
 
The worst performing sector is Telcos, falling 0.06 per cent to 2,053. Shares in TPG Telecom have fallen 0.83 per cent, trading at $10.71. Shares in Vocus Communications and M2 Group are also lower. 

Gold and the dollar
 
Gold is trading at $US1,136 an ounce.
The Australian dollar is buying $US0.7073

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