After six days of gains, the Australian sharemarket closed down more than half a per cent today after the Slovakian government rejected the European bailout fund.
Meanwhile at home, the House of Representatives passed a package of bills, paving the way for the federal government’s carbon price scheme from July 1 next year.
The S&P/ASX200 Index closed 23 points weaker at 4,204. On the futures market, the SPI is down 25 points.
Economic news
Consumer confidence edged up unexpectedly in October. Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute’s consumer sentiment index increased 0.4 per cent to 97.2 in October, following a rise of 8.1 per cent the month before. Year on year, the index is 16.9 per cent lower than the same time in 2010.
The Bureau of Statistics said home loans approved in August rose 1.2 per cent, and total housing finance by value added one per cent.
Company news
At least one of Qantas Airways Limited's (ASX:QAN) union troubles was eased today. It reached an agreement with the National Union of Workers to give 360 workers across catering, freight facilities and engineering a three per cent pay rise over three years. The airline’s in-principal agreement with the Flight Attendants Association of Australia will be put to employees for a vote in coming weeks.
But today’s news doesn’t calm heat from the Transport Worker’s Union engineers’ union or pilots’ union, who are still campaigning and conducting strikes for better conditions and pay.
Shares in Qantas Airways Limited (ASX:QAN) gained 0.32 per cent, closing at $1.555.
JB Hi-Fi Limited (ASX:JBH) chief executive Terry Smart’s hoping the Apple (NASDAQ:AAPL) iPhone 4s will boost sales this quarter after telling shareholders today the retailer’s first-quarter comparable sales were down 3.5 per cent for the period.
JB Hi-Fi is still moving forward with new store plans despite expecting online retail to rise. It’s going to open 10 new stores in time for Christmas, bringing their national store number to 162.
Shares in JB Hi-Fi Limited (ASX:JBH) rose 3.53 per cent to close at $14.36.
Leighton holdings Limited's (ASX:LEI), Middle East subsidiary Habtoor Leighton Group has won a $US290 million construction contract for the first phase of a shopping mall in Qatar, which will begin immediately. The group is also targeting several other large infrastructure projects in the Arab emirate.
BHP Billiton Limited (ASX:BHP) (NYSE:BHP) has approved US$1.2 billion in precommitment capital for the first phase of the Olympic Dam mine expansion. The project in South Australia’s now funded to procure long-lead time items like trucks and accommodation.
Tabcorp Holdings Limited's (ASX:TAH) first quarter revenue rose 2.7 per cent compared with the same period last year to $759.4 million. Growth in fixed odds racing, as well as the introduction of animated racing game Trackside in NSW, underpinned a two per cent rise in revenue in the company’s wagering division to $394.1 million.
And Alcoa Incorporated (NYSE:AA), the parent of Australia’s Alcoa (ASX:AAI) missed expectations for its third quarter profits. Income from continuing operations came in at $172 million, which was up 182 per cent from the year before but still half the amount achieved in the previous quarter.
Best and worst performers
The best performing sector was utilities, gaining 29 points to close at 4,380. The worst performing sector was energy, losing 151 points to close at 13,507.
The best performing stock in the S&P/ASX200 was Tabcorp, lifting 4.23 per cent to close at $2.71. Shares in PanAust and JB Hi-Fi also finished the day stronger.
The worst performing stock was Fletcher Building, down 12.28 per cent closing at $5.43. Aquila and Intrepid also closed lower.
Commodities
Gold is trading at $US1,667 an ounce. Light crude is down 37 cents at $US85.44 a barrel.
