Boosted by strong offshore leads the Australian share market has jumped more than 2 per cent. Stronger than expected US housing data and German business confidence data have fuelled positive sentiment, with gains being led by the miners and energy stocks and all sectors adding value at noon.
The S&P/ASX 200 index has advanced 87 points and is 4,141. On the futures market the SPI is 82 points stronger.
Economic news
A gauge on Australia’s future growth has weakened for the second straight month. According to Westpac and the Melbourne Institute’s leading index, the annualised growth rate eased to 2.6 per cent in October from 2.8 per cent the month before. The latest read is 0.4 per cent under the longer term trend rate of 3 per cent.
Company news
Transurban Group (ASX:TCL) has inked a deal with the New South Wales Government for a major upgrade of the M5 South West Motorway in Sydney. The toll road operator has a 50 per cent interest in the company that operates the M5, Interlink Roads. Construction on the project to add one lane in each direction is due to start mid next year and will cost $400 million. The New South Wales Government is expected to fund about $50 million of the upgrade cost. Transurban Group shares have lifted 0.08 per cent and are trading at $5.67.
Hutchison Telecommunications Limited (ASX:HTA) 50 per cent owned Vodafone has been put on notice from Australia’s communications regulator. The warning is in regards to a privacy breach in January when the mobile telecommunications company leaked its customers personal details. The Australian Communications and Media Authority has told Vodaphone it had unsatisfactory systems in place to guard customer privacy and it must adhere to the telecommunications consumer protections code or be hit with up to $250,000 in fines. Hutchison Telecommunications shares have added 1.81 and are trading $0.056.
Best and worst performers
All sectors have advanced: The best performing sector is Materials, gaining 305 points to 10,794. Shares in OneSteel have risen 7.09 per cent and trading at $0.68. Shares in Atlas Iron and Newcrest Mining are also stronger.
The sectors with the smallest losses is Telco Services, adding 10 points to 1,122. Shares in Amcom Telecommunications have dropped 1.18 per cent and trading at $0.84. Shares in Telecom Corporation of New Zealand are lower while shares in Singapore Telecommunications are flat.
New Zealand
The NZSX50 is 19 points higher: Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock easing 0.99 per cent to just over $2.00 followed by Chorus, Fletcher Building and Guinness Peat Group.
Gold and the dollar
Gold is trading at $US1,623 an ounce.
The Australian dollar is buying $US1.011.
