A late recovery on Wall Street pushed the Australian share market more than 1.5 per cent higher in early trade, with the market up around 1 per cent at noon. The miners and banks are leading gains with most sectors trading stronger.
The S&P/ASX200 index is 45 points higher at 3,917. On the futures market the SPI is up 27 points.
Economic news
Spending in the retail sector rose for the second straight month in August, coming in higher than expected. According to the Australian Bureau of Statistics, retail trade rose 0.6 per cent to a seasonally adjusted $20.813 billion beating expectations for a lift of between 0.2 and 0.5 per cent.
Australian services sector activity expanded in September for the second straight month. The Australian Industry Group and Commonwealth Bank’s performance of services index dropped 1.8 points to 50.3 points in September. The read, more than 50, indicates an increase in activity.
Company news
Shares in Transfield Services Limited (ASX:TSE) jumped this morning, on news the project manager and maintenance service provider is launching an on-market buyback. Transfield plans to buy back around 10 per cent of its stock and says the move will be earnings per share accretive and fully funded by existing facilities. Shares in Transfield Services are 5.25 per cent higher, trading at $1.905.
The chief of Australia’s largest airline, Qantas Airways Limited (ASX:QAN), has called for less aggression and more sense in the wake of receiving death threats amid industrial action. As reports emerge that the airline’s management have received threatening letters, CEO Alan Joyce has asked union leaders to keep a more sensible tone. Both the Transport Workers Union New South Wales and Australian Licensed Aircraft Engineers Association have denied that their unions are behind the threats. Shares in Qantas have slipped 0.58 per cent, trading at $1.367.
Best and worst performers
Most sectors are higher: The best performing sector is Materials, advancing 252 points to 10,709. Shares in Gunns have risen 7.41 per cent and trading at $0.145. Shares in Lynas Corporation and BHP Billiton are also stronger.
The worst performing sector is Consumer Staples slipping 33 points to 7,328. Shares in Woolworths have eased 0.94 per cent and trading at $24.18. Shares in Coca-Cola Amatil and Metcash are also weaker.
New Zealand
The NZSX50 is 4 points firmer. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 1.16 per cent at $2.565 followed by Sky City Entertainment Group, Fletcher Building and Telstra.
Gold and the dollar
Gold is trading at $US1,628 an ounce. The Australian dollar is buying 95.1 US cents.
