Swinging from some deep losses earlier this week, the Australian Share market is almost 2 per cent stronger after Wall Street rose amid a lift in optimism over Europe’s debt crisis. All sectors are higher, with the banks leading gains.
The S&P/ASX200 index has advanced 74 points and is 4,080 at noon. On the futures market the SPI is up 63 points.
Economic news
More people bought cars last month. According to the Australian Bureau of Statistics car sales were up 3.3 per cent in August from the month before, broadly in line with expectations.
Company news
Shares in Rio Tinto Limited (ASX:RIO, NYSE:RIO, LON:RIO) have risen after the mining giant said it would invest an extra $US833 million in Western Australia’s Pilbara region and that it has raised $US2 billion of debt in the US public bond market. Rio’s latest Pilbara funds will be geared towards power and fuel supply projects to facilitate its target of boosting iron ore output to 333 million tonnes per annum by 2015. Shares in Rio Tinto have risen 1.67 per cent at noon and are trading at $69.49.
Following a statement from Gunns Limited (ASX:GNS) yesterday that it has reached an agreement with Tasmania’s state government, reports have emerged that the forestry company will receive a $34 million settlement under the Tasmanian forests agreement. The Australian Associated Press says Gunns has accepted a $23 million settlement offer from the state government in exchange for forfeiting its native timber contracts as well as $11.5 million to resolve the company’s debts. Gunns said yesterday that it will provide the details of the deal today. Shares in Gunns have been in a trading halt since August and last traded at $0.205.
Best and worst performers
All sectors are trading higher. The best performing sector is Financials, Excluding Real Estate Investment Trusts gaining 98 points to 4,300. Shares in IOOF Holdings have advanced 3.62 per cent and trading at $5.44. Shares in Westpac Banking Corporation and Insurance Australia Group are also stronger.
The sector with the smallest gains is Telco Services adding 13 to 1,049. Shares in Broad Investments have sunk 33.33 per cent to $0.002. Shares in Telecom Corporation of New Zealand and iiNet are steady at noon.
New Zealand
The NZSX50 has risen 21 points. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand at the top of the list with stock 0.8 per cent higher at $2.535 followed by Fletcher Building, Westpac and ANZ.
Gold and the dollar
Gold is trading at $US1,814 an ounce and the Australian dollar is buying $US1.0249 cents.
