The Australian sharemarket is almost 1 per cent lower at midday pulled down by the banks and the miners. Spain’s credit rating gets the chop, fuelling fears of a deepening economic slump in Europe.
The S&P/ASX200 index has fallen 37 points to 4,208. On the futures market the SPI is 25 points lower.
European economic news
Standard & Poor's cuts Spain's credit rating by one notch to AA- from AA with a negative outlook. It follows the downgrading of the country’s major banks.
Company news
Leighton Holdings Limited (ASX:LEI) has officially confirmed its subsidiary Leighton Offshore has been awarded a $US518 million contract by Iraq’s South Oil Company. The project involves the development of two offshore platforms to expand Iraq’s crude oil export capacity. Leighton Holdings shares have fallen 1.79 per cent and are trading at $20.27.
The Prime Minister says the Fair Work Act allows the government to play a role if the dispute between Qantas Airways Limited (ASX:QAN) and the unions escalates too much further. But Ms Gillard added that she wanted the parties to work it out between themselves, adding that they should “get on and do it”. Qantas shares have lost 1.15 per cent and are trading at $1.547.
Best and worst performers
The best performing sector is Telco Services, adding 3 points to 1,058. Shares in Telstra have increased 0.32 per cent and trading at $3.09. Shares in Telecom Corporation of New Zealand are stronger and Singapore Telecommunications, lower.
The worst performing sector is Materials dropping 206 points to 11,585. Shares in Iluka Resources have lost 3.71 per cent and trading at $16.36. Shares in BHP Billiton and Fortescue Metals Group have also fallen.
New Zealand
The NZSX50 is 3 points lower.
Taking a look at the top four stocks by turnover, shares in Fletcher Building are at the top of the list with stock 1.2 per cent higher at $6.75. Followed by Telecom Corporation of New Zealand, ANZ and Sky City Entertainment.
Gold and the dollar
Gold is trading at $US1,666 an ounce and the Australian dollar is buying $US1.0167 cents.
