The Australian share market closed 0.2 per cent higher today, having retreated from earlier highs. Stocks rallied after US President Barack Obama unveiled plans for $US447 billion in tax cuts and new spending to revive jobs growth. However local stocks pared gains as the session neared a close, awaiting to see just how Wall Street will respond to Obama’s proposed package.
The S&P/ASX200 Index closed 7 points higher at 4,195. For the week, the index shed 48 points. On the futures market, the SPI is currently 1 point lower.
On Wall Street, over the three trading days this week: The Dow Jones Industrial Average was 56 points higher. The S&P 500 Index was 12 points higher. The NASDAQ was 49 points higher. The 100 Index was 46 points higher.
Asian economic news
China's inflation rate eased last month, fueling speculation the nation will be less likely to tighten monetary policy this year. The National Bureau of Statistics consumer price index increased 6.2 per cent in August, pulling back from a three-year high of 6.5 per cent the month before and still above the government’s target of 4 per cent.
In Japan, new figures out today have shown the nation’s economy shrank more than expected in the second quarter of this year. The Cabinet Office has shown Japan’s gross domestic product shrank at an annualised 2.1 per cent rate from April to June, following the earthquake and tsunami that struck the nation in March.
Company news
Rio Tinto Limited (ASX:RIO) has announced that it will spend $292 million to develop its own water supplies in Western Australia’s Pilbara region. The mining giant is currently targeting to boost its iron ore production in the region from 220 million tonnes to more than 330 million tonnes per annum by 2015. Shares in Rio Tinto eased 0.07 per cent today, finishing at $71.25.
Westpac Banking Corporation (ASX:WBC) has beaten 189 global banks to score the title as the world's best bank for corporate sustainability. An annual review of the Dow Jones Sustainability Indexes awarded the title to Westpac, based on the bank’s approach to creating shareholder value, maximising opportunities and managing risks arising from economic, environmental and social developments. Shares in Westpac ended the day 0.2 per cent higher at $20.13.
Ahead of Myer Holdings Limited (ASX:MYR) full year results due out next week the retailer has announced a number of changes to its executive team. Myer’s head of merchandise, Penny Winn, has resigned and rejoined Woolworths Limited (ASX:WOW) as its new head of multi-channel activities.
Metcash Limited's (ASX:MTS) $215 million bid to acquire rival supermarket chain Franklins has been dealt a blow. Australia’s competition regulator says it will appeal the Federal Court’s decision to approve the grocery wholesaler’s bid, claiming that if it goes unchallenged the merger could have serious implications for the regulator’s ability to protect customers from anti-competitive mergers in the future.
Best and worst performers
The best performing sector was Telco Services, adding 7 points to close at 1,043. The worst performing sector was Real Estate Investment Trusts, losing 4 points to close at 771 points. The best performing stock in the S&P/ASX200 was Intrepid Mines, shares rising 9.16 per cent to close at $1.43. Shares in Resolute Mining and OceanaGold also finished stronger today. The worst performing stock was Austar United Communications, dropping 7.02 per cent to close at $1.125. Shares in Onesteel and Energy Resources of Australia also fell today.
Commodities
Gold is trading at $US1,873 an ounce and is down by $10 on the week. Light crude is up $0.10 cents to $US89.15 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0615 cents, and is slightly down on the week.
