Wait for rates: Aus shares down 0.15% at noon

Despite positive leads from Wall Street, the Australian share market opened lower, with many local investors holding fire until the much anticipated RBA rates decision later this afternoon. The market hasn’t moved too much in the first couple of hours of trade and is now tracking 0.15 per cent lower at noon. The energy space is proving to be the biggest drag on the market after oil prices fell to below US$40 a barrel overnight. No surprises that the financials space is currently mixed, with the big four banks currently in undecided territory ahead of this afternoon’s anticipate rate cut.

The S&P/ASX 200 index is 8 points down at 5,580. On the futures market the SPI is down 12 points.

Economic news

The majority of economists are predicting a 25 basis point interest rate cut when the Reserve Bank of Australia meets this afternoon. Despite inflation being well below the RBA’s target band of 2 to 3 per cent, economists believe the deciding factor will be the strength of the Aussie dollar which is hovering around the 75 cent mark.

Company news

Virgin Australia Holdings Limited (ASX:VAH) has announced the successful completion of its fully unwritten 1 for 1 non-renounceable pro-rata entitlement offer. Eligible shareholders took up 89.5 per cent of the entitlements raising a total of $852 million. Shares in Virgin Australia are trading up 2.08 per cent at $0.24.

Credit Corp Limited (ASX:CCP) has reported a 20 per cent increase in net profit to $45.9 million for the year to 30 June 2016. The company also says there is a positive outlook across all businesses with FY2017 NPAT growth guidance of 13 to 18 per cent. Shares in Credit Corp are trading up 12.61 per cent at $15.09.

Best and worst performers

The best performing sector is Telcos, gaining 0.45 per cent to 2,127. Shares in Telstra have risen 0.61 per cent and trading at $5.76. Shares in TPG Telecom and Vocus Communications are flat.

The worst performing sector is Energy, falling 2.3 per cent to 8,263. Shares in Beach Energy have fallen 6.14 per cent, trading at $0.54. Shares in Worley Parsons and Santos are also lower.

Gold and the dollar

Gold is trading at $US1,349 an ounce.
The Australian dollar is buying $US0.7543.