The Australian share market briefly started the session today in positive territory after Wall Street kicked off the fourth quarter with a bang, when the Dow Jones notched another record high. But a drop in the oil price, along with QBE
(ASX:QBE) shares pulled our local bourse into the red.
QBE shares hit multi year lows and the broader market sentiment also appears to be weak in the wake of the horrific shooting in Las Vegas, with the death toll continuing to rise above 50.
Mostly all the sectors today are trading below the line, with Energy leading the decliners. The likes of Beach Energy
(ASX:BPT) lost over 4 per cent.
The only sector bucking the trend and going higher is Telcos, with Vocus Group
(ASX:VOC) rising about 1.6 per cent, while ANZ
(ASX:ANZ) and Macquarie Group
(ASX:MQG) are also higher.
The S&P/ASX 200 index is 23 points down, tracking 0.41 per cent lower at noon at 5,706.
On the futures market the SPI is 19 points lower.
Asian marketsJapan’s Nikkei has added 0.29 per cent, Hong Kong’s Hang Seng and the Shanghai Composite are not trading due to public holiday.
Local economic news The RBA board will meet this afternoon and reveal their interest rate decision at 2.30pm, with interest rates expected to remain on hold. But the commentary of their decision will be closely watched, with whispers of another Melbourne Cup Day move in the cash rate. Despite that, the Reserve Bank Governor has continued to stress a rate hike is “some time” away.
In the meantime, the ABS reported building approvals rose 1.1 per cent in August in trend terms, while seasonally adjusted dwelling approvals gained 0.4 per cent in the month. It came as a surprise to the market and economists who forecast that seasonally adjusted dwelling approvals would fall.
Company news: QBE Insurance
(ASX:QBE) has increased its large individual risk and catastrophe claims allowance, in the wake of Hurricane Harvey, Irma, Maria and the Mexican Earthquakes. The insurer says, given the catastrophic losses, 2017 will likely be its ‘costliest year’ in the history. Because of that, it increased its 2017 allowance of such claims to $1.75 billion. QBE says there will also be pre-tax impact of $600 million on earnings. Shares in QBE Insurance
(ASX:QBE) are trading 3.93 per cent lower at $9.78.
Ardent Leisure
(ASX:AAD) has advised the CEO of its Bowling and Entertainment business, Nicole Noye, has resigned with effect 27 December 2017. The owner of Dreamworld and other entertainment businesses says, Nicole has been a driving force in transitioning the bowling and entertainment division into a multi attraction experience. She also evolved the group’s new Kingpin and Playtime concepts. Shares in Ardent Leisure
(ASX:AAD) are trading flat at $1.81.
Best and worst performersThe best performing sector is Telcos, gaining 0.18 per cent to 1,225. Shares in Vocus Group
(ASX:VOC) have risen 1.65 per cent and trading at $2.47. Shares in TPG Telecom
(ASX:TPM) are higher, Telstra Corporation
(ASX:TLS) is flat.
The worst performing sector is Energy, falling 1.06 per cent to 9,220. Shares in Beach Energy
(ASX:BPT) have fallen 4.40 per cent, trading at $0.87. Shares in Whitehaven Coal
(ASX:WHC) and Caltex Australia
(ASX:CTX) are also lower.
Gold and the dollarGold is trading at $US1,270 an ounce and one Australian dollar is buying 78.10 US cents.
