The market is beginning to dip, as investors brace for inflation data coming out of China and the US. The market had been trading flat for most of the morning, but anticipation that China’s central bank would take a more aggressive stance began to take a negative grip on stocks.
The S&P/ASX200 index has fallen 19 points and is 4,865 at noon. On the futures market the SPI is 17 points lower.
Company news: Rio Tinto Ltd (ASX:RIO) has warned shareholders that world markets are fragile with persistent economic and financial imbalances. The global market for iron ore will remain tight in the short to medium term, delays to new supply and strong demand are expected to drive prices. The chairman added the miner was well placed to supply the increase in demand for metals and minerals as the developing world continues to industrialise. Shares in Rio Tinto have fallen 0.69 per cent and are trading at $84.53.
Boral Ltd (ASX:BLD) is buying assets from construction materials company Wagners Group. Boral is making the purchase for $173 million. Boral is acquiring quarry, concrete and land assets in Queensland. The move significantly expands the geographic reach of Boral’s construction materials division. The deal is subject to approval from the Australian Competition and Consumer Commission. Boral expects the deal to be finalised in the second half of 2011. Shares in Boral have risen 0.59 per cent and are trading at $5.08.
To the best and worst performers: The best performing sector is Real Estate Investment Trusts, rising 1 point to 856. Shares in Commonwealth Property Office Fund have improved 1.2 per cent and trading at $0.845. Shares in GPT Group and Charter Hall Office have also gained at midday. The worst performing sector is Health Care falling 99 points to 8,872. Shares in Biota Holdings have fallen 1.84 per cent and trading at $1.335. Shares in CSL and ResMed Inc are also lower at noon.
To New Zealand: The NZSX50 has risen 1 point.
Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 0.11 per cent at $9.18 followed by Westpac, ANZ and Telecom Corporation of New Zealand.
To gold and the dollar: Gold is trading at $US1,477 an ounce and the Aussie dollar is buying $US1.0538 cents.
