As expected on this morning’s weak offshore leads, the Aussie sharemarket has extended yesterday’s losses and is about one per cent lower at midday.
The S&P/ASX200 index has lost 36 points and is 4,262 at noon. On the futures market the SPI is 29 points lower.
Economic news
Australian manufacturing activity fell at a slower rate in October. The Australian Industry Group/PriceWaterhouseCoopers Australian Performance of Manufacturing Index (PMI) rose 5.1 points in October to 47.4.
At 2.30pm the RBA will make its highly anticipated announcement about its interest rate decision.
There’s more gloom for housing markets, the Housing Industry Association says new homes sales in September dropped 3.5 per cent.
Company news
Telstra Corporation Limited (ASX:TLS) may have its structural separation process sped up, now the Australian Competition and Consumer Commission is hosting an industry forum on Friday.
About 15 parties were invited yesterday, and it’s expected the forum will lay down ground rules about how the ACCC will handle Telstra’s undertaking. It has to be approved by December 20, in order for the $11 billion NBN Co deal to go ahead. Shares in Telstra Corporation Limited (ASX:TLS) are up 0.81 per cent and trading at $3.12.5
Qantas Airways Limited (ASX:QAN) has now attracted even more government attention today. Prime minister Julia Gillard has been urged to act more quickly as Transport minister Anthony Albanese and assistant treasurer Bill Shorten are believed to have argued for an immediate intervention to terminate industrial action. Meanwhile domestic flights are back in the air today and international services are expected to be running by this afternoon, and the airline’s Saying the backlog should be cleared earlier than expected. Shares in Qantas Airways Limited (ASX:QAN) have firmed 2.36 per cent and are trading at $1.65.
Best and worst performers
The best performing sector is telcos, rising 8 points to 1,069. Shares in Hutchison Telecommunications have advanced 1.69 per cent and trading at 6 cents. Shares in Telstra and Telecom Corporation of NZ are also stronger.
The worst performing sector is materials dropping 151 points to 15,546. Shares in Sundance have retreated 3.45 per cent and are trading at 42 cents. Shares in BHP and Fortescue have also fallen.
New Zealand
The NZSX50 has lifted 1 point. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 0.15 per cent to $6.64 followed by Telecom Corporation of New Zealand, ANZ and Westpac.
Gold and the dollar
Gold is trading at $US1,717 an ounce and the Australian dollar is buying $US1.5.53 cents.
