Market Wrap: ASX reverses gains on China data

Market Reports

Local stocks snapped a three day winning streak today, starting higher but closing in the red. Following mixed leads the Australian share market reached the day’s highs after the release of local jobs numbers but dipped into the red by close after inflation figures from China. The session was also marked by a series of earnings reports. 
 
The S&P/ASX 200 index dipped 4 points to finish at 4,308. On the futures market, the SPI is currently 5 points lower.

Economic news

China’s inflation rate has dropped to a two and a half year low. The National Bureau of Statistics reported consumer prices increased 1.8 per cent in July from last year, compared to rising 2.2 per cent the month before. The producer price index dropped 2.9 per cent in July, down from 2.1 per cent the month before. 

The Australian Bureau of Statistics (ABS) has reported Australia’s unemployment rate fell to 5.2 per cent in July from an upwardly revised 5.3 per cent in June. The ABS also reported the Australian economy added 14,000 new jobs last month, 4,000 more than expected. 

Profit results

Global miner Rio Tinto Limited (ASX:RIO) has reported a 34 per cent drop in its first half underlying earnings, hit by softening commodity prices and a strong Australian dollar. 

Media company News Corp (ASX:NWS) has posted a 56 per cent fall in its full year net income, impacted by writedowns on its publishing division. 
 
Telco giant Telstra Corporation Limited (ASX:TLS) has recorded a 5.4 per cent increase in full year net income on the back of mobile growth, and, forecast growth ahead.  
 
Gaming company Tabcorp Holdings Limited (ASX:TAH) says its full year net profit fell 36 per cent in the same period it demerged its casinos business, but net profit on a continuing-operations basis rose 12.7 per cent. 
 
Online travel agent Webjet Limited (ASX:WEB) has generated 24 per cent net profit growth in the full financial year, its seventh straight year of profit acceleration. 
 
STW Communications Group Limited (ASX:SGN) has posted a 4.7 per cent improvement in its full year net profit, underpinned by acquisitions within the advertorial, training and communications sectors. 
 
Best and worst performers

The best performing sector was materials adding 134 points to close at 9,682.
The worst performing sector was telco services, losing 30 points to close at 1,329 points.
 
The best performing stock in the S&PASX 200 was Coalspur Mines Limited (ASX:CPL), rising 10.88 per cent to close at $0.82. Shares in Alumina Limited (ASX:AWC) and Karoon Gas Australia Limited (ASX:KAR) also closed higher.

The worst performing stock was IOOF Holdings Limited (ASX:IFL), dropping 6.25 per cent to close at $6.00. Shares in Discovery Metals Limited (ASX:DML) and FlexiGroup Limited (ASX:FXL) also closed lower. 

Commodities

Gold is trading at $US1,616 an ounce.
Light crude is $0.18 higher at $US93.53 a barrel.

The Australian dollar

The Australian dollar is buying $US1.06. 

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