Weighed down by European debt concerns and weak leads, the Australian share market opened more than 1 per cent lower. The release of inflation data from the ABS has trimmed almost all of those losses with the local bourse steady at noon.
The S&P/ASX200 index has lost 2 points and is 4,226. On the futures market the SPI is 6 points higher.
Economic news
Australia’s core measure of inflation has missed expectations. The Australian Bureau of Statistics’ consumer price index has shown headline inflation rose 0.6 per cent in the September quarter, bringing the annual rate to 3.5 per cent. The Reserve Bank of Australia maintains a target range of between 2 to 3 per cent.
Company news
Gloucester Coal Limited (ASX:GCL) says its first quarter sales rose 17 per cent, boosted by the purchase of a new mine and a bigger stake in another one of its mines. Over the year to the end of September Gloucester more than doubled production to 934,000 metric tons. Gloucester has advised coking coal demand was softening but demand for thermal coal remains strong. Shares in Gloucester Coal are 0.44 per cent lower and trading at $6.82.
Beach Energy Limited (ASX:BPT) has reported an increase in first quarter output and sales, underpinned by stronger demand for oil and gas. In the three months to the end of September sales revenue rose 39 per cent and production gained 8 per cent quarter on quarter. Beach’s result was also aided by improved access to the Santos Limited (ASX:STO) operated Cooper Basin areas as flood waters receded. Shares in Beach Energy are steady and trading at $1.16.
Best and worst performers
Most sectors are lower: The best performing sector is Health Care, gaining 71 points to 7,768. Shares in Sigma Pharmaceuticals have increased 3.79 per cent and trading at $0.685. Shares in CSL and Sonic Healthcare are also stronger. The worst performing sector is Energy falling 87 points to 13,479. Shares in Carnarvon Petroleum have dropped 3.7 per cent and trading at $0.13. Shares in WorleyParsons and Paladin Energy have also declined.
New Zealand
The NZSX50 is 31 points lower. Taking a look at the top four stocks by turnover, ANZ is at the top of the list with stock flat at $28.00 followed by Fletcher Building, Telecom Corporation of New Zealand, and Westpac.
Gold and the dollar
Gold is trading at $US1,710 an ounce. The Australian dollar is buying $US1.038 cents.
