Despite a weak close on Wall Street the Australian share market has rebounded from a sharp fall yesterday, lifting as much as o.8 per cent in morning trade. As the US debt standoff continues most local sectors are in positive territory, with hopes the US government will avoid default by lifting its $US14.3 trillion debt ceiling.
The S&P/ASX200 index has added 24 points and is 4,554 at noon. On the futures market the SPI is 14 points higher.
US economic news
In a rare primetime address, US President Barack Obama has confirmed that US debt talks have reached a stalemate. Obama again pitched his plan to cut US debt by around $US4 trillion and warned that defaulting on the country’s obligations would be a “reckless and irresponsible outcome”.
Company news
Whitehaven Coal Limited (ASX:WHC) has side-stepped the impact that weather conditions had on its rivals and recorded a 48 per cent increase in June quarter production, coming in at 1.5 million tonnes. In the same period total coal sales were up 82 per cent and run of the mine production increased 37 per cent. In the 2011 financial year, Whitehaven Coal says it expects to report an underlying net profit of $70 million, before significant items. Shares in Whitehaven Coal are 1.07 per cent higher at noon, trading at $6.62.
Shares in Oil Search Limited (ASX:OSH) have risen after oil and gas explorer posted a 42 per cent jump in second quarter operating revenue, coming in at near $US218 million. In the June quarter the average realised oil price added 13.5 per cent, hitting $US123.28 per barrel. In the same period, total oil sales came to 1.6 million barrels, increasing from 1.23 million barrels in the prior quarter. Shares in Oil Search are 2.23 per cent higher at noon, trading at $6.88.
Sectors
The best performing sector is Financials Excluding Real Estate Investment Trusts, gaining 45 points to 4,836. Shares in QBE Insurance Group have added 2 per cent and trading at $17.32. Shares in Macquarie Group and Commonwealth Bank are also higher. The worst performing sector is Health Care dropping 35 points to 8,458. Shares in Ramsay Health Care have fallen 1.64 per cent and trading at $17.94. Shares in Cochlear and Biota Holdings are also lower.
New Zealand
The NZSX50 is 6 points down. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock up 0.19 per cent at $2.645 followed by ANZ, AMP, and New Zealand Oil & Gas.
Gold and the dollar
Gold is trading at $US1,614 an ounce. The Australian dollar is buying $US1.0855 cents.
