Aussie shares are 1.5 per cent lower at noon. Following news China has increased its interest rate, local mining stocks have retreated on concerns over whether this rate rise will dent Chinese demand.
The S&P/ASX200 index is down 61 points at 4,595 and on the futures market, the SPI200 is down 70.
In economic news: The Australian Bureau of Statistics has reported that international merchandise imports for September increased by $350 million to $17.38 billion. The Westpac-Melbourne Institute’s index of economic activity declined for the fifth consecutive month, falling 0.1 per cent to 5.3 per cent. Department of Education Employment and Workplace Relations index of skilled job vacancies dropped 6 per cent to 43.1 in October.
To company news: Woolworths Ltd (ASX:WOW) has reported a 4.1 per cent increase in its first quarter sales to $13.9 billion. Australia's largest supermarket chain says the retail environment was tough, but reducing shelf prices enabled the company to maintain market share and grow customer numbers and items sold. CEO Michael Luscombe says it's a solid start to the financial year which continues to hold underlying challenges such as tighter consumer spending and the deflationary impacts of the stronger Australian dollar. Shares in Woolworths are down 0.38% at $28.86
Gambling company Tabcorp Holdings Ltd (ASX:TAH) has struck a deal with Racing New South Wales and the NSW Government. The in principle agreement will see Tabcorb provide $150 million for the merger between Sydney Turf Club and the Australian Jockey Club, as well as the development of Randwick racecourse. Tabcorb says the agreement is conditional on approval of the merger by the two clubs, and will be set in motion after NSW cabinet approval and the required administrative, regulatory and legislative changes. Shares in Tabcorp Holdings last traded at $7.10.
Turning now to market indices: Almost all sectors are in the red at midday with Health Care the only sector in the black, up 3 points to 8,023. Shares in CSL are up 1.19% to $32.28. While shares in Ramsay Health Care and Aevum are also higher at noon. The worst performing sector at midday is Materials, with the index down 250 points to 12,865. Shares in Sundance Resources have fallen 4.92% to $0.29. Shares in Fortescue Metals Group and BHP Billiton are also lower at noon.
To New Zealand now, the NZSX50 is down 22 points. Taking a look at the top 4 stocks by turnover: Heading the list is Telecom of New Zealand with stock down 1.46% at $2.03 followed by; ANZ, Fletcher Building and Westpac.
To gold and the dollar: Gold is trading at $1336 US an ounce and the Aussie dollar is trading at 96.98 US cents.
