Australian stocks have rallied in morning trade, gaining 2 per cent at midday, responding positively to euro zone policymakers’ moves to shore up struggling banks.
The S&P/ASX200 index has jumped 78 points to 4,148. On the futures market the SPI is 90 points stronger.
Economic news
The Australian Industry Group-Housing Industry Association's performance of construction index fell 2.1 points to 30 points in September. A reading below 50 indicates a contraction.
Company news
Good news for Rio Tinto Limited (ASX:RIO) and Ivanhoe Mines, the Mongolian Government backing down on wanting a bigger stake in the miners’ copper and gold project in that country. The mine is the biggest project in the Mongolian economy, with the first stage alone expected to cost around $US6 billion. Rio is tipped to launch a takeover bid for Ivanhoe Mines next year. Rio shares have risen 3.51 per cent and are trading at $65.50.
Metcash Limited (ASX:MTS) says the battle between the country’s supermarket giants is hurting farmers and manufacturers. The supermarkets are passing on the costs of their promotions to producers, according to Business Spectator. It’s reported that Woolworths and Coles aren’t losing a cent, despite selling products such as milk as low as a dollar a litre. Metcash shares have risen 1.22 per cent at $4.15.
Best and worst performers
All are trading in the black. The best performing sector is Materials, advancing 291 points to 11,493. Shares in PaperlinX have rallied 14.71 per cent and trading at $0.078. Shares in Gindalbie Metals and Boral are also stronger.
The sector with the smallest gains is Utilities up by 2 points to 4,286. Shares in SP AusNet have fallen 1.09 per cent and are trading at $0.91. Shares in Envestra and AGL Energy are also weaker.
New Zealand
The NZSX50 is 27 points higher.
Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock flat at $2.60 followed by Fletcher Building, Mainfreight and ANZ.
Gold and the dollar
Gold is trading at $US1,652 an ounce and the Australian dollar is buying 97.6 US cents.
