The Australian sharemarket opened significantly higher on news that a deal has been reached to raise the US debt ceiling.
The S&P/ASX200 index has risen 83 points to 4,507 at noon. On the futures market the SPI is 101 points higher.
Economic news
The TD Securities-Melbourne Institute inflation gauge rose 0.3 per cent in July, after prices stayed flat in June.
Company news
Wikileaks documents indicate that Rio Tinto (ASX:RIO) lost control of one of the world’s largest iron ore deposits after a rival paid a $6.4 billion bribe to officials in Guinea, but the cheque bounced. The Times reports that the cables reveal the challenges faced by Rio as it tried to hold onto the Simandou project. The miner is expected to report a 40 per cent increase in results when it reports on Thursday. Shares in RIO (ASX:RIO) have risen 2.06 per cent at noon and are trading at $81.65.
And Macarthur Coal Limited (ASX:MCC) has told shareholders not to take action, after ArcelorMittal and Peabody Energy confirmed a $15.50 per share takeover offer. The coal miner said it told Peabody and Arcelor that it would recommend a $16 per share offer. Shares in Macarthur Coal (ASX:MCC) have risen 1.67 per cent at noon and are trading at $15.81.
Sectors
The best performing sector is financials excluding real estate investment trusts, advancing 121 points to 4,799. Shares in NAB (ASX:NAB) have gained 3.13 per cent and trading at $24.75. Shares in ANZ (ASX:ANZ) and Commonwealth Bank (ASX:CBA) are both stronger at noon.
The worst performing sector is Real Estate Investment Trusts, but still gaining 2 points to 789. Shares in Investa Office Fund (ASX:IOF) have dropped 1.56 per cent and trading at 63 cents. Shares in Goodman Group (ASX:GMG) and Dexus (ASX:DXS) are also weaker at noon.
New Zealand
The NZSX50 is 14 points stronger at noon. 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 0.57 per cent at $2.64 followed by Fletcher Building, Westpac and Sky City Entertainment.
Gold and the dollar
Gold is trading at $US1,613 an ounce and the Australian dollar is buying $US1.1055 cents.
