Uncertainty, fears and the potential danger of a US debt default have pushed the Australian share more than 1 per cent down at noon. The miners are lower on mixed commodity prices and investors have also left the big banks. Macquarie Group Limited (ASX:MQG) has shed 4.5 per cent, even after reconfirming its full year guidance. Retail giant Wesfarmers Limited (ASX:WES) fell to a one year low after warning conditions are likely to remain challenging.
The S&P/ASX200 index has sunk 50 points and is 4,487 at noon. On the futures market the SPI is 56 points lower.
Company news
After almost a week of industrial action at the world's largest copper mine, Escondida, BHP Billiton Limited (ASX:BHP) has declared a force majeure at the mine it controls. The force majeure will allow the global miner to temporarily pause its contractual commitments because of a situation beyond its control. Concerns over global copper supplies have risen as has the estimated financial impact on BHP, some tipping the cost of halted operations could be as much as $28 million a day. Shares in BHP Billiton have fallen 1.47 per cent and are trading at $42.37.
Origin Energy Limited (ASX:ORG) and ConocoPhillips have approved the first phase of a final investment decision for their $35 billion Australia Pacific liquefied natural gas project. Origin says the announcement of a $US14 billion investment marks the start of one of Australia’s largest LNG export projects. While the final investment decision is for a single liquefaction train, Origin believes it is well placed to move to a full $US20 billion two-train project. Shares in Origin Energy have eased 0.13 per cent and are trading at $15.07.
Sectors
Most sectors are in the red: The best performing sector is Telco Services, adding 2 points to 1,040. Shares in Stratatel are 9.68 per cent stronger and trading at $0.034. Shares in Telecom Corporation of New Zealand and Telstra are also on positive ground. The worst performing sector is Materials dropping 195 points to 13,450. Shares in Onesteel have fallen 2.96 per cent and trading at $1.805. Shares in Sims Metal Management and Rio Tinto are also lower.
New Zealand
The NZSX50 is 19 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 0.19 per cent at $2.64 followed by ANZ, Westpac and Fletcher Building.
Gold and the dollar
Gold is trading at $US1,615 an ounce. The Australian dollar is buying $US1.1035 cents.
