The Australian share market is trading flat at midday after opening marginally higher this morning, buoyed by a stronger Australian dollar and high commodity prices which boosted resource stocks. The gains in the big miners are countered by declines in the major banks.
The S&P/ASX200 index has declined 1 point to 4,693, while on the futures market the SPI is down 8 points.
Economics news: The TD-Securities Melbourne Institute measure of consumer prices showed a pick-up in overall price pressures in November, although inflationary pressures remained contained. Consumer price inflation rose 0.4 per cent in November, compared to a 0.3 per cent rise in October. It was the largest monthly increase since May. The index was 3.9 per cent higher compared to the same period last year.
Newcrest Mining Ltd (ASX:NCM) has temporarily suspends its operations in Ivory Coast as precaution because of the potential security issues related to the recent election tensions. The miner says it plans to recommence operations as soon as possible at the mine, which produces around 120,000 ounces of gold per annum. Shares in Newcrest Mining are up 0.61 per cent to $40.99.
Qantas Airways Ltd (ASX:QAN) is claiming damages from engine-maker Rolls-Royce over faulty A380 engines and loss of business as investigations concluded that a design fault was the cause of a mid-air engine failure on one of Qantas’ superjumbos last month. In a claim filed in the Federal Court of Australia, Qantas says Rolls-Royce was in a breach of duty and misled the airline as it supplied defective engines. Shares in Qantas are down 1.12 per cent to $2.66.
Turning to market indices, and the best performing sector is Healthcare with the index up 105 points to 8,842. Shares in Optiscan Imaging have advanced 16.28 per cent to $0.05. Shares in Biomd and Pharmanet are also higher. The worst performing sector at midday is Real Estate Investment Trust with the index down 6 points to 844. Shares in Westfield Group are down 1.13 per cent to $12.21. Shares in GPT Group and Mirvac Group have also dropped at midday.
To New Zealand: The NZSX50 is up 3 points. Taking a look at the top 4 stocks by turnover, Sky Network Television is at the top of the list with stock up 0.58 per cent at $5.21; followed by Telecom Corporation of New Zealand, Fletcher Building Group and ANZ.
To gold and the dollar: Gold is trading at $US1,412 an ounce and the Aussie dollar is buying 99.06 US cents.
