The Australian share market is lower at midday as investors cautiously respond to Moody’s placing Britain and France on a negative ratings watch and downgrading Spain and Italy’s debt rating. The Reserve Bank of Australia has also backed claims by major lenders that their cost of borrowing has risen dramatically because of the European debt crisis.
The S&P/ASX 200 index fell 15 points and is 4,271. On the futures market the SPI is 7 points lower.
Economic news
Business confidence has lifted in January thanks to recent interest rate cuts. NAB’s monthly business survey found confidence rose to four points.
Company news
Rio Tinto Limited (ASX:RIO, NYSE:RIO) and BHP Billiton Limited (ASX:BHP, NYSE:BHP) will spend $US 4 billion to increase copper production at the Escondida copper mine in Chile. BHP will spend $US 2.2 billion and Rio $US 1.2 billion to replace a concentrator at the mine with a new plant. Construction will start this month and is expected to be completed in 2015. Rio Tinto shares are trading 0.62 per cent lower at $69.99.
Quickflix Limited (ASX:QFX) has requested a trading halt pending the release of an announcement regarding a capital raising supplementing the funds being raised from Home Box Office. The trading halt will be in place no later than Thursday’s open. Quickflix shares last traded at $0.125.
Best and worst performers
The best performing sector is Consumer Staples gaining 41 points to 7,374. Shares in Coca-Cola Amatil Limited (ASX:CCL) have advanced 1.29 per cent and trading at $11.75. Shares in Woolworths Limited (ASX:WOW) and Metcash Limited (ASX:MTS) are also stronger.
The worst performing sector is Consumer Discretionary, losing 9 points to 1,234. Shares in Tabcorp Holdings Limited (ASX:TAH) are 5.17 per cent lower, trading at $2.75. Shares in Harvey Norman Holdings Limited (ASX:HVN) and David Jones Limited (ASX:DJS) have also fallen.
New Zealand
The NZSX50 is 5 points weaker at noon.
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 $6.71, followed by Westpac, Telecom Corporation of New Zealand and Mainfreight.
Gold and the dollar
Gold is trading at $US1,721 an ounce and the Australian dollar is buying $US1.0717.
