Following negative leads from global markets jittery about the economic outlook the Australian share market opened sharply lower is 1.1 per cent down at noon.
Fal out from the budget laid down last night is still being digested but the biggest drag on the market is BHP which has slumped as much as seven per cent in early trade. The miner has copped a beating following weaker than expected China data and news Brazil has commenced proceedings against the company and its Brazilian partners following the failure of a dam
The S&P/ASX 200 index is 59 points down at 5,295. On the futures market the SPI is 86 points lower.
Company news
Woolworths Limited
(ASX:WOW) says that it’s had a ratings downgrade from Standard and Poor’s. The retailer has been dropped from a BBB+ to BBB by the ratings agency but says it remains committed to a solid investment grade rating. Shares in Woolworth are trading 5.84 per cent lower at $20.97.
Fortescue Metals Group Limited
(ASX:FMG) has announced plas to repay around $867 million of long term debt due in 2019. Higher iron ore prices are allowing the move which follows a similar announcement last week. Shares in Fortescue are trading 2.28 per cent lower at $3.21.
Best and worst performers
The best performing sector is real estate investment trusts, gaining nearly one per cent to 1,448. Shares in Stockland have risen 2.25 per cent and trading at $4.55. Shares in Westfield Group and Mirvac are also stronger.
The worst performing sector is materials falling 4.26 per cent to 8,060. Shares in Alumina have fallen 7.96 per cent, trading at $1.45. Shares in BHP Billiton and Incitec Pivot are also lower.
Gold and the dollar
Gold is trading at $US1,283 an ounce.
The Australian dollar is buying 74.77 US cents.
