Despite strong US leads, the Australian share market has opened in the red as disappointing Chinese economic data weighed on investors. Local stocks have edged back 0.2 per cent lower at noon.
The S&P/ASX 200 index is 6 points down at 4,310. On the futures market the SPI is 5 points higher.
Economic news
China's purchasing managers' index (PMI) fell to 49.2 index points in August, from 50.1 the previous month according to government figures. Under the 50-level, separates expansion from contraction.
A private measure of inflation has posted its largest monthly increase in almost 18 months but very little is from the carbon tax.
The TD Securities-Melbourne Institute inflation gauge rose 0.6 per cent in August, the biggest month-on-month increase since March last year.
Company news Wide Bay Australia Limited’s
(ASX:WBB) Managing Director Ron Hancock will step down from his role in November, as he prepares for his retirement. The board is yet to appoint a successor. The news follows Wide Bay posting a 16 per cent fall in net profit to $19.04 million due to a slowdown in the housing market. Shares in Wide Bay last traded at $6.89.
Commonwealth Bank of Australia
(ASX:CBA) has launched a $750 million hybrid issue. The tier 1 hybrid raising is aimed at refinancing earlier hybrids and to additionally fund the bank’s business. Shares in CBA are trading down 0.53 per cent at $54.45.
Best and worst performers The best performing sector is Telco Services gaining 8 points to 1,328. Shares in Singapore Telecommunications Limited
(ASX:SGT) have risen 1.15 per cent and trading at $2.63. Shares in Telstra Corporation are stronger whilst Telecom Corporation of New Zealand is steady at noon.
The worst performing sector is Energy, falling 99 points to 12,433. Shares in Paladin Energy Limited
(ASX:PDN) have fallen 2.28 per cent, trading at $1.28. Shares in Whitehaven Coal and Senex Energy are also lower.
Gold and the dollar
Gold is trading at $US1,687 an ounce and the Australian dollar is buying $US1.025.
