Following a positive lead from Wall St overnight Aussie shares are higher at midday, stronger than expected labour force data and higher commodity prices helping to lift banks and resource stocks and support the market.
The S&P/ASX200 index is 43 points higher at 4,911 and on the futures market the SPI 200’s up 43 points.
In economic news: According to data released by the ABS the unemployment rate fell to 5.5% in December down from 5.6% in November. Analysts expected it to rise to 5.8%.
In company news: The Transport Workers Union is reportedly to question two employees of Qantas Airways Ltd (ASX:QAN) budget offshoot Jetstar in Vietnam on allegations of a breach of safety regulations. According to the Australian Associated Press the Civil Aviation Administration of Vietnam says safety rules at Jetstar Pacific Airlines have been breached. AAP reports a Transport Workers Union spokesperson saying the unions want to investigate how a Qantas subsidiary is behaving overseas and whether or not they are flouting international aviation safety laws. Shares in Qantas fell 0.34 per cent to $2.94
Australian nickel pig iron producer China Steel Australia Ltd (ASX:CNH) says it has increased production at its nickel pig iron and merchant pig iron plant to 85% capacity after receiving a large order from a major customer. This is the second ramp up of production this week after earlier announcing an increase to 75%. China Steel Australia, which listed on the ASX in February 2008, manufactures steel and iron in China for the domestic Chinese market. Shares in China Steel Australia surged 20.83% to $0.145.
Turning now to market indices: Majority of sectors are in positive territory at midday, however the sector with the biggest gain is the Materials index up 192 points at 13,148. Shares in Iron Ore Holdings advanced 13.04% to $2.08. Shares in Trafford Resources and Atlas Iron also higher.
The only sector in the red at midday is the Consumer Discretionary index, down 5 to 1,617. Shares in APN News & Media fell 2.9% to $2.34. While shares in Amalgamated Holdings and Seven Network are also lower at noon.
Looking to New Zealand and the NZSX50 is 2 points higher. Turning to the top 5 stocks by turnover: Fletcher Building heads the list - stock down 0.24% at $8.43 followed by; Telecom of New Zealand, AMP, Nuplex Industries and Goodman Property Trust.
To gold and the dollar: Gold is trading at US$1,143.25 an ounce and the Aussie dollar is trading at 92.88 US cents.
