Lifted by strong offshore leads the Australian share market rose more than half a per cent this morning but, after the release of weaker than expected jobs figures, gave up all gains and is now back where it started.
The S&P/ASX200 index is 1 point up at 4,185. On the futures market the SPI is down 13 points.
Economic news
Australia’s unemployment rate has hit a 10-month high. According to the Australian Bureau of Statistics the unemployment rate rose more than expected to 5.3 per cent in August from 5.1 per cent the month before. The domestic economy lost 9,700 jobs in August, missing expectations for an increase of 12,000 jobs.
Company news
Forestry company Gunns Limited (ASX:GNS) has been hit with more legal action in an effort to stop further work at its $2.5 billion Tamar Valley pulp mill in northern Tasmania. Anti-mill group Pulp the Mill claims that Gunns does not have the required permits to continue building the mill. Gunns has continued to insist that it holds valid permits and that it is coming close to securing a partner for the project. Shares in Gunns have been in a trading halt since August 25 and last traded at $0.205.
Aquila Resources Limited (ASX:AQA) has won an injunction against its 50:50 joint venture Eagle Downs coking coal project partner, Brazilian miner Vale, to stop a meeting. If the meeting had gone ahead Vale could have potentially bought out Aquilas stake in Eagle Downs, at a price determined by an independent expert, if Aquila didn’t agree with Vale’s development plans for the project. Statements from both Aquila and Vale are expected later today. Shares in Aquila Resources entered into a trading halt today having last traded at $6.03.
Best and worst performers
The best performing sector is Energy, rising 116 points to 13,061. Shares in Beach Energy have added 4.8 per cent and trading at $1.20. Shares in Carnarvon Petroleum and Molopo Energy are also higher. The worst performing sector is Consumer Staples, easing 37 to 7,412. Shares in Woolworths have pulled back 1.06 per cent and trading at $25.26. Shares in Coca-Cola Amatil are lower while shares in Foster’s Group have firmed.
New Zealand
The NZSX50 has risen 18 points. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand at the top of the list with stock steady at $2.48 followed by Mainfreight, Fletcher Building and Westpac.
Gold and the dollar
Gold is trading at $US1,840 an ounce. The Australian dollar is buying $US1.0595 cents.
