Aussie shares have shrugged off a flat lead from Wall St to be 0.8 per cent higher at noon. Benign inflation data out this morning suggesting the RBA is unlikely to raise rates tomorrow.
The S&P/ASX200 index is up 35 points at 4,697 and on the futures market, the SPI200 is up 51.
In economic news: TD Securities-Melbourne Institute monthly inflation gauge increased by 0.3 per cent in October, up over a 0.1 per cent rise the month before. While the Australia Bureau of Statistics reported the weighted average of eight capital cities increased a modest 0.1 per cent in the September quarter, after a 3.1 per cent increase in the quarter before and the lowest rise since the March quarter last year.
To company news: Macquarie Group Ltd (ASX:MQG) has come under fire from the head of the Australian Competition and Consumer Commission, Graeme Samuel for the way in which it dealt with small business owners who had been impacted by a finance scam. According to the ABC Macquarie is taking legal action against hundreds of small businesses who have been caught by the scam that mislead customers into signing agreements known as telephony bundling, that teams together telecommunications services with electronic goods and other equipment. The ABC's Four Corners program is expected to show tonight how Mr Samuel hit a brick wall when he personally asked the investment bank’s CEO Nicholas Moore to be reasonable with the affected small business customers. Shares in Macquarie Group are 0.99% stronger at $36.56.
UGL Ltd (ASX:UGL) has been awarded $250 million in rail fright orders with leading rail operators and resource companies. Among the freight supply and maintenance orders include a five-year locomotive service and support deal with Rio Tinto Ltd (ASX:RIO) in Western Australia. The engineering and construction company says its rail business continues to see clear signs of a recovery in sales enquiries on the back of strengthening resources sector conditions. Looking ahead UGL anticipates a healthy expansion in its rail business in fiscal 2011. Shares in UGL are 0.81% firmer at $14.86. Turning now to market indices: The best performing sector is Financials Excluding Real Estate Investment Trusts, with the index up 62 points to 5,171. Shares in Challenger Financial Services Group are up 2.17% to $4.70. Shares in Westpac and Macquarie Group are also higher. The worst performing sector at midday is Consumer Staples, with the index down 45 points to 8,046. Shares in Goodman Fielder have fallen 1.01% to $1.47. Shares in Metcash and Woolworths are also lower at midday.
To New Zealand now, the NZSX50 is up 7 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is at the top of the list with stock up 0.98% at $2.07 followed by; Fletcher Building, Westpac and Guinness Peat Group. To gold and the dollar: Gold is trading at $1358 US an ounce and the Aussie dollar is trading at 98.5 US cents.
