Dragged down by weak leads the Australian share market opened lower and has sunk 0.9 per cent to session lows after the latest second quarter growth figures disappointed. The mining sector is weighing with shares in iron ore miner Fortescue Metals Group Limited
(ASX:FMG) slumping after announcing it will sell its Solomon power station, one day after flagging plans to slash costs.
The S&P/ASX 200 index has dropped 40 points and is sitting at 4,264. On the futures market the SPI is 50 points lower.
Economic news
Australia’s economy grew less than expected between April and June 2012: The Australia Bureau of Statistics has reported gross domestic product lifted 0.6 per cent in the June quarter and 3.7 per cent over the year to June. GDP rose 1.3 per cent in the March quarter.
Australia's services sector shrunk for the seventh straight month: The Australian Industry Group and Commonwealth Bank of Australia's
(ASX:CBA) Performance of Services Index dropped 4.1 points to 42.4 in August, under the 50 level indicating contracting activity.
Company news Coal miner Aquila Resources Limited
(ASX:AQA) says a budget dispute with its joint venture partner in the $6 billion West Pilbara Iron Ore Project is headed to arbitration after the latest talks failed to reach resolution.
Grain handler and takeover target Viterra
(ASX:VTA) has been granted permission from Australia’s competition regulator to auction its South Australian wheat export capacity.
Ship builder Austal Limited
(ASX:ASB) has announced a strategic partnership with Mediterranean shipyard, Marina Barcelona 92, to offer support and services to the super-yacht and high speed vessel markets.
Second-hand goods franchise Cash Converters International Limited
(ASX:CCV) has opened its first store in Dubai it says to offer an alternative for expatriates coming in and out of Dubai.
Best and worst performers The best performing sector is Health Care gaining 189 points to 10,393. Shares in CSL Limited
(ASX:CSL) have risen 2.73 per cent and trading at $45.51. Shares in ResMed Inc.
(ASX:RMD) are higher while shares in Sigma Pharmaceutical Limited
(ASX:SIP) are slightly down.
The worst performing sector is Materials, falling 218 points to 9,024. Shares in Fortescue Metals Group Limited
(ASX:FMG) have fallen 9.38 per cent, trading at $3.09. Shares in Arrium Limited
(ASX:ARI) and Lynas Corporation Limited
(ASX:LYC) are also lower.
Gold and the dollar
Gold is trading at $US1,694 an ounce.
The Australian dollar is buying $US1.021.
