The Australian share market fell at open, weighed down by European debt concerns and comments from the US Federal Reserve deflating hopes of a third round of stimulus. Local equities took a further hit with disappointing trade data from the Australian Bureau of Statistics (ABS) before noon, pushing the Australian dollar to an 11-week low.
The S&P/ASX 200 index has dropped 18 points and is 4,319. On the futures market the SPI is 15 points lower.
Economic news
Australia’s trade deficit narrowed in February, but missed expectations for a surplus of more than $1 billion. According to the Australian Bureau of Statistics the balance on goods and services came in at a deficit of $480 million in February after a deficit of $971 million in January.
Australia’s services sector contracted last month. According to the Australian Industry Group and Commonwealth Bank of Australia (ASX:CBA), the performance of services index added 0.3 points to 47 points in March, remaining under the 50 level that indicates contraction.
Company news
QBE Insurance Group Limited (ASX:QBE) says it expects premiums to increase by more than seven per cent this year following an unprecedented amount of natural disasters. Speaking at the QBE’s annual general meeting today, outgoing CEO Frank O'Halloran attributed last year’s catastrophic events for 45 per cent fall in the insurer’s full year net profit. Shares in QBE Insurance Group have risen 1.65 per cent and are trading at $14.13.
Whitehaven Coal Limited (ASX:WHC) has lowered its saleable coal output forecast for the second half of the current financial year. The coal miner has blamed wet weather conditions for an anticipated 400,000 tonne reduction in its saleable coal output. Whitehaven has also today revealed it will delay the commissioning of the longwall at its flagship Narrabri mine from this month to next month. Shares in Whitehaven Coal have dipped 0.52 per cent and are trading at $5.73.
Best and worst performers
The best performing sector is Health Care gaining 84 points to 8,751. Shares in Sigma Pharmaceutical Limited (ASX:SIP) have risen 1.57 per cent and trading at $0.645. Shares in Ramsay Health Care Limited (ASX:RHC) and CSL Limited (ASX:CSL) are also higher.
The worst performing sector is Materials, falling 126 points to 10,970. Shares in Mirabela Nickel Limited (ASX:MBN have fallen 4.27 per cent, trading at $0.56. Shares in Gindalbie Metals Limited (ASX:GBG) and BHP Billiton Limited (ASX:BHP) are also lower.
New Zealand
The NZSX50 is 4 points lower at noon: Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 2.94 per cent at $6.28, followed by Telstra Corporation, Telecom Corporation of New Zealand and Sky City Entertainment Group.
Gold and the dollar
Gold is trading at $US1,647 an ounce.
The Australian dollar is buying $US1.0306.
