A strong morning for the Australian sharemarket, up 2.5% at midday, with all sectors trading in the black. Stocks rallying after the European Central Bank cut rates and Greece said it was willing to scrap a contentious referendum.
The S&P/ASX200 index is trading 103 points higher at 4,275. On the futures market the SPI is 85 points stronger.
Economic news
The Reserve Bank of Australia has released its statement on monetary policy, saying that a more neutral stance was now appropriate given that inflation was likely to be within the target range and economic growth would remain moderate, resulting in reducing the cash rate by a quarter of a percentage point to 4.5 per cent. The statement highlighted Europe’s debt and banking crisis as causes of concern.
Company news
Qantas Airways Limited (ASX:QAN) chief Alan Joyce has admitted the airline continued to sell tickets after deciding to ground the fleet. Mr Joyce made the admission during a parliamentary inquiry today, apologising for the six-hours of ticket sales. At the inquiry this morning, the Qantas boss was at pains to stress the airline’s need to pursue Asian expansion. Qantas shares have gained 2.45 per cent and are trading at $1.615.
Transfield Services Limited (ASX:TSE) has secured two defence industry contracts worth $130 million. One project in Western Australia is worth $40 million to continue to provide garrison support services to thirty-five sites. The other project in South Australia is worth $90 million to provide comprehensive maintenance services. Transfield Services shares have risen 3.04 per cent and are trading at $2.37.
Best and worst performers
All sectors are in the black. The best performing sector is Materials, rising 413 points to 11,714. Shares in Gindalbie Metals have gained 8 per cent and are trading at $0.54. Shares in Fortescue Metals Group and Iluka Resources are also stronger.
The sector with the smallest gains is Telco Services trading 10 points higher at 1,062. Shares in Hutchison Telecommunications have dropped 3.33 per cent and are trading at $0.058. Shares in iiNet have also fallen and Telstra shares have made gains.
New Zealand
The NZSX50 has firmed 18 points.
Taking a look at the top four stocks by turnover, Metlifecare is at the top of the list with stock adding 1.77 per cent to $2.30 followed by Telecom Corporation of New Zealand, Fletcher Building and Westpac.
Gold and the dollar
Gold is trading at $US1,759 an ounce and the Australian dollar is buying $US1.0421 cents.
