Weighed down by the US debt-talk standoff, the Australian share market opened lower this morning. Losses were extended after the release of higher than expected inflation figures at 11.30am but had the opposite effect on the Australian dollar, pushing it over a new record past 110 US cents.
The S&P/ASX200 index has fallen 18 points and is 4,556 at noon. On the futures market the SPI is 16 points lower.
Economic news
The Australian Bureau of Statistics has reported that the consumer price index rose more than had been expected in the three months to the end of June. After a rise of 1.6 per cent in the March quarter inflation lifted 0.9 per cent in the June quarter, representing an annual inflation rate of 3.6 per cent.
Company news
Australand Property Group (ASX:ALZ) has reported a 17 per cent increase in its interim net profit, coming in at $84.78 million. In the first half of its 2011 financial year the property developer says operating profit after tax rose 7 per cent $64.89 million. Looking ahead Australand says it is "cautious" but "well positioned" to meet its targets this year. Shares in Australand Property Group have dipped 1.13 per cent and are trading at $2.63.
Shares in Aquila Resources Limited (ASX:AQA) jumped after the coal explorer said it expects normal shipments from its Isaac Plains Coal Mine to resume now that it has reached an agreement after a dispute with its partner, Vale. Aquila’s wholly-owned subsidiary IP Coal Pty Ltd and Vale are equal venture partners in the Isaac Plains Coal Mine in Queensland and had been fighting over how to conduct separate coal shipments from the mine that has shared ownership. However, Aquila now says both parties have effectively put aside the difference of opinion enabling them to make separate shipments of coal from the mine. Shares in Aquila Resources are 5.41 per cent stronger, trading at $7.41.
Sectors
The best performing sector is Consumer Staples, gaining 34 points to 7,714. Shares in Goodman Fielder have added 2.76 per cent and trading at $0.93. Shares in Metcash and Woolworths are also higher. The worst performing sector is Utilities dropping 27 points to 4,321. Shares in Envestra have fallen 3.62 per cent and trading at $0.665. Shares in Duet Group and APA Group are also lower.
New Zealand
The NZSX50 is 15 points lower. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 1.15 per cent at $2.59 followed by Westpac, Fletcher Building and ANZ.
Gold and the dollar
Gold is trading at $US1,623 an ounce. The Australian dollar has hit a fresh post float record and is currently buying $US1.1051 cents.
