After positive offshore leads the Australian share market is more than 0.5 per cent higher at noon. Investors have been encouraged by the EU’s plans to recapitalise its banks. Most sectors are making gains with the miners at the top of the pack.
The S&P/ASX200 index has added 28 points to 4,233. On the futures market the SPI is 20 points higher.
Economic news
Australian jobs data for last month has come in better than expected. The Australian Bureau of Statistics has reported that the unemployment rate unexpectedly dropped from a 10-month high to 5.2 per cent in September. The economy added 20,400 jobs in the month, with both full-time and part-time employment increasing.
Company news
Qantas Airways Limited (ASX:QAN) has announced that it will ground five of its aircraft and cut up to 100 domestic flights as it battles to deal with the impact of ongoing industrial action. CEO, Alan Joyce, says the aircraft will remain grounded for at least one month. The cancelled flights will mainly impact customers flying to and from Adelaide, Brisbane, Melbourne and Sydney. Qantas has made the changes in response to a backlog of maintenance work on the aircraft, following months of intensifying union action from the licensed aircraft maintenance engineers union. Shares in Qantas have lifted 0.45 per cent and are trading at $1.56.2
Rival airline Virgin Blue Holdings Limited (ASX:VBA) has been given a nod of approval for its proposed strategic alliance with Singapore Airlines from Australia’s competition regulator. The Australian Competition and Consumer Commission has granted interim authorisation for the deal that will see both airlines cooperate on their connecting routes. While the final approval is still required the ACCC says the alliance is likely to result in material benefits to the public. Shares in Virgin Blue have risen 1.59 per cent and are trading at $0.32.
Best and worst performers
Most sectors are making gains: The best performing sector is Materials, adding 187 points to 11,754. Shares in ABM Resources have surged 16.67 per cent and trading at $0.063. Shares in Greenland Minerals and Energy and Rio Tinto are also stronger.
The worst performing sector is Consumer Staples dropping 52 points to 7,528. Shares in Woolworths have lost 1.08 per cent and trading at $24.65. Shares in Coca-Cola Amatil and Metcash have also fallen.
New Zealand
The NZSX50 is 18 points down. Taking a look at the top four stocks by turnover, Shares in Fletcher Building are at the top of the list with stock 2.02 per cent lower at $6.78. Followed by Telecom Corporation of New Zealand, ANZ and Guinness Peat Group.
Gold and the dollar
Gold is trading at $US1,683 an ounce. The Australian dollar is buying $US1.0199 cents.
