News of a loosening in monetary policy in China, Europe and the UK failed to inspire investors overnight, with all markets down.The Australian share market retreated at open and has remained in negative territory this morning.
The S&P/ASX 200 index is 19 points down at 4,150. On the futures market the SPI is 15 points lower.
Economic news
The Australian Industry Group’s Performance of Construction Index (PCI) has shown the Australian construction sector has contracted in June, with PCI remaining flat at 34.8. A reading below 50 indicates contraction.
Company news
Telstra Corporation Limited (ASX:TLS) is reportedly set to increase the cost of its mobile phone services. According to media reports, it’s “Every Day Connect” plans will incorporate the price rises. Separately, the telco has commenced selling signal boosters to combat weak indoor signals. Telstra says, the device known as a smart repeater is to service a small subset of customers where local obstructions interfere with internal signals. Shares in Telstra are trading down 0.54 per cent at $3.71.
Mirvac Group (ASX:MGR) has appointed Bevan Towning as Chief Executive Officer who has held various senior positions in real estate funds and asset management including Challenger Financial Services Group. The news follows the resignation of Justin Mitchell in April. Shares in Mirvac are trading down 0.19 per cent at $1.28.
Best and worst performers
Utilities is the only sector up, gaining 16 points to 4,845. Shares in Spark Infrastructure Group (ASX:SKI) have risen 0.65 per cent and trading at $1.54. Shares in Hastings Diversified Utilities Fund (ASX:HDF) and AGL Energy Limited (ASX:AGK) are also stronger.
The worst performing sector is Energy, falling 116 points to 12,121. Shares in Worleyparsons Limited (ASX:WOR) have fallen 2.2 per cent, trading at $24.88. Shares in Senex Energy and Beach Energy are also lower.
Gold and the dollar
Gold is trading at $US1,606 an ounce
The Australian dollar is buying $US1.027
