The Australian sharemarket is trading flat at midday, the market had been briefly encouraged by the Reserve Bank’s words this morning, but now fear seems to be setting in ahead of the US Federal Reserve Chairman’s speech tonight.
The S&P/ASX200 index has fallen 6 points and is 4,207 at noon. On the futures market the SPI is 24 points weaker.
Economic news
RBA governor Glenn Stevens has told the House of Representatives economic committee that households are still showing caution about spending and inflation needs to be carefully watched, but believes the central bank can keep inflation under control.
Company news
Coal & Allied Industries Limited (ASX:CNA) shares have been placed in a trading halt pending an announcement. The company received a takeover offer from Rio Tinto Limited (ASX:RIO) and Mitsubishi, valuing the miner at $10.6 billion. There will be an update on the status of the deal by Tuesday. When the offer was received, Coal & Allied formed a committee to review the proposal. The offer would require approval of 75 per cent of the free float shares. Coal & Allied shares last traded at $117.81.
BHP Billiton Limited (ASX:BHP) has completed its takeover of Petrohawk Energy. The merger was the final step of the acquisition process. BHP now has more than $US60 billion remaining from a $US80 billion budget for growth projects over the next five years. Shares in BHP climbed 0.18 per cent and are trading at $38.68.
Best and worst performers
The best performing sector is Consumer Discretionary gaining 11 points to 1,212. Shares in Fairfax Media have risen 8 per cent and are trading at $0.837. Shares in Aristocrat Leisure and Austar United Communications are also stronger.
The worst performing sector is Telco Services falling 10 points to 1,057. Shares in Telstra Corporation have dropped 1.29 per cent and trading at $3.07. Shares in Telecom Corporation of New Zealand and Singapore Telecommunications are also lower.
New Zealand
The NZSX50 is 8 points weaker.
Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock falling 0.18 per cent at $2.715 followed by Fletcher Building, ANZ and Westpac.
Gold and the dollar
Gold is trading at $US1,759 an ounce and the Australian dollar is buying $US1.0477 cents.
