Following negative offshore leads the Australian share market has shed more than 1.5 per cent at noon. Stocks dropped at open on doubts that the upcoming EU summit will adequately address the region’s sovereign debt situation. The resource sector is faring the worse ahead of third quarter GDP data from China. Telcos are only sector making gains, boosted by Telstra Corporation Limited (ASX:TLS).
The S&P/ASX200 index has shed 72 points to 4,204. On the futures market the SPI is 77 points weaker.
Economic news
The Reserve Bank of Australia’s minutes for the October board meeting have revealed that the central bank’s outlook of inflation is improving. The RBA says, "An improved inflation outlook, if confirmed by further data, would increase the scope for monetary policy to provide some support to demand".
Company news
Telstra Corporation Limited (ASX:TLS) has promised to maintain its fully franked 28 cent dividend for this year and the next. Chairwoman, Catherine Livingstone, confirmed the dividend at its AGM ahead of a highly anticipated shareholder vote on the telco’s $11 billion national broadband network deal with the federal government. The polls for voting opened this morning at 9am and the results are due this afternoon. Shares in Telstra have advanced 1.93 per cent and are trading at $3.17.
Cash Converters International Limited (ASX:CCV) has announced that US-based EZCORP Inc (NASDAQ:EZPW) has acquired the company’s stores and franchise rights in several US states. EZCORP holds a 33 per cent stake in Cash Converters with the master franchise rights for the Cash Converters business in Canada. In August, EZCORP abandoned its plans to buy a controlling interest in the second-hand goods and financial services franchise, blaming the federal government’s proposed move to limit small credit contract fees. Shares in Cash Converters International have fallen 3.3 per cent and are trading at $0.44.
Best and worst performers
Most sectors are lower: The best performing sector is Telco Services, lifting 19 points to 1,084. Shares in iiNet have risen 4.78 per cent and trading at $2.41. Shares in Telstra Corporation and Hutchinson Telecommunications are also stronger.
The worst performing sector is Materials dropping 360 points to 11,468. Shares in Fortescue Metals Group have retreated 8.41 per cent and trading at $4.68. Shares in Atlas Iron and Lynas Corporation have also taken a hit at noon.
New Zealand
The NZSX50 has fallen 49 points. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 5.83 per cent at $6.30 followed by ANZ, Telecom Corporation of New Zealand and AMP.
Gold and the dollar
Gold is trading at $US1,675 an ounce. The Australian dollar is buying $US1.0185 cents.
