It seems that markets around the world have rallied due to diminishing fears of a “Brexit” occurring later this week. This rally also extends to the Australian share market, which yesterday in positive territory. Today, the Aussie market has continued this upward trajectory, and is now tracking 0.41% higher at noon.
Healthcare is the sector leading the charge this morning. Also, all the big four banks posted gains, which helped to boost our local index. But the biggest drag on the market is the Energy sector.
The S&P/ASX 200 index is 22 points higher at 5,278. On the futures market the SPI is up 33 points.
Economic newsThe Reserve Bank has signalled another interest rate cut, following its Monetary Policy meeting today. The Reserve Bank is concerned about the country’s below-average inflation, and the rising Australian dollar (which may complicate the economy’s transition away from mining). Commentators anticipate an interest rate cut from August onwards, after July’s Federal election.
Company newsAir New Zealand Ltd
(ASX:AIZ) has completed the sale of its 19.98% shareholding in Virgin Australia. The NZ airline sold its stake to a Chinese company, the Nanshan Group. As a result, Air New Zealand’s stake in Virgin is now just 5.9%.
Shares in Air New Zealand are up 0.99%, and are trading at $2.04.
The Lantern Hotel Group
(ASX:LTN) has agreed to sell its Exchange Hotel, which is located in the heart of Newcastle. Lantern sold the hotel for around $6.6 million, and completion of the sale is expected to occur in mid-August.
Shares in Lantern Group last traded at $0.12.
Best and worst performersThe best performing sector is Healthcare, gaining 1.19 per cent to 20,925. Shares in Sonic Healthcare have risen 2.55 per cent and trading at $21.34. Shares in ResMed and Sirtex Medical are also higher.
The worst performing sector is Energy, falling 1.4 per cent to 8,260. Shares in Woodside Petroleum have fallen 2.18 per cent, trading at $26.87. Shares in Caltex and Oil Search are also lower.
Gold and the dollarGold is trading at $US1,290 an ounce.
The Australian dollar is buying $US0.7478.
