The Australian share market dropped sharply from the open and has remained around 1 per cent down at noon. With US markets closed for a public holiday local investors followed Europe’s lead, falling amid fresh debt fears in the region. Local stocks recovered some ground after the release of data from the Australian Bureau of Statistics this morning, ahead of the Reserve Bank of Australia’s interest rate decision due at 2:30pm this afternoon.
The S&P/ASX200 index has lost 51 points and is 4,091 at noon. On the futures market the SPI is down 56 points.
Economic news
The number of home loans approved rose 1 per cent in the month of July to 49,813, after a flat read the month before, according to the Australian Bureau of Statistics.
The ABS has reported that Australia's current account deficit narrowed in the June quarter, the national account deficit improving 33 per cent to $7.419 billion, seasonally-adjusted.
Company news
A new report has revealed that Foster’s Group Limited (ASX:FGL) has continued to lose market share in the packaged beer segment. The Australian says data from market researcher Neilson has shown Foster’s control of packaged beer sales by volume in the last June quarter was 47.8 per cent, down from 49.9 per cent the year before. According to the paper the data is likely to bolster SABMiller’s $9.5 billion bid for the brewer. Shares in Foster’s Group are trading 1.03 per cent lower at $4.80.
Forestry company Gunns Limited (ASX:GNS) has reportedly rejected a settlement offer from the Tasmanian state government to settle the balance of its contracts and pay-off its debts to the state-owned Forestry Tasmania. According to the Australian Associated Press a restructure of the Tasmanian forestry industry is now in doubt after Gunns rejected an undisclosed amount of compensation. Last week Gunns said it would update the market when it had finished reviewing the offer. The company has not since released an official statement on the matter. Shares in Gunns have been in a trading halt since August 25 and last traded at $0.205.
Best and worst performers
All sectors have fallen into the red: The sector with the smallest losses is Utilities, easing 17 points to 4,323. Shares in Spark Infrastructure Group have added 0.96 per cent and trading at $1.262 cents. Shares in Envestra and AGL Energy have also firmed. The worst performing sector is Energy, dropping 251 points to 12,719. Shares in Bounty Oil & Gas have retreated 4 per cent and trading at $0.024 cents. Shares in Paladin Energy and Linc Energy have also retreated.
New Zealand
The NZSX50 has lost 16 points. Taking a look at the top four stocks by turnover, Telecom Corporation at the top of the list with stock up 0.42 per cent at $2.41 followed by Fletcher Building, Westpac and Guinness Peat Group.
Gold and the dollar
Gold is trading at $US1,899 an ounce. The Australian dollar is buying $US1.0534 cents.
