The Australian share market defied negative leads and rose up to 0.5 per cent in morning trade but pulled back sharply before noon. The banks are higher amid hopes the Reserve Bank of Australia will cut rates tomorrow. The miners are leading gains with steel makers Arrium Limited
(ASX:ARI) BlueScope Steel Limited
(ASX:BSL) advancing after Arrium revealed it has received a takeover bid.
The S&P/ASX 200 index has risen 4 points to 4,391. On the futures market the SPI is 8 points higher.
Economic news
Manufacturing activity in Australia continues to shrink, contracting for the seventh straight month. According to the Australian Industry Group and PricewaterhouseCoopers the Performance of manufacturing index dropped 1.2 points to 44.1 in September, with a read below 50 indicating contracting activity.
TD Securities and the Melbourne Institute inflation gauge increased 0.2 per cent in September after a gain of 0.6 per cent the month before. Over the year inflation rose by 2.4 per cent from September 2011, remaining with the the Reserve Bank of Australia's 2 per cent to 3 per cent target band.
Company news Shares in Newcrest Mining Limited
(ASX:NCM) are higher after the gold miner told the Australian Securities Exchange (ASX) it rejects claims questioning the legitimacy of its leases for the $2 billion Cadia East project in New South Wales.
Shares in DuluxGroup Limited
(ASX:DLX) have lifted after the paint marker extended its takeover offer acceptance period for Alesco Corporation Limited
(ASX:ALS) shareholders until December 7, 2012.
Shares in Reed Resources Limited
(ASX:RDR) are trading up after the exploration company said it has awarded a contract to advance its Meekatharra Gold Project in Western Australia.
Shares in Ausdrill Limited
(ASX:ASL) dipped this morning before being placed into a trading halt. The mining services provider has given no reason for the suspension.
Best and worst performers The best performing sector is materials gaining 47 points to 9,976. Shares in Arrium Limited
(ASX:ARI) have risen 24.77 per cent after receiving a takeover bid and trading at $0.68. Shares in Mirabela Nickel Limited
(ASX:MBN) and BlueScope Steel Limited
(ASX:BSL) are also stronger.
The worst performing sector is telco services, falling 11 points to 1,332. Shares in Telstra Corporation Limited
(ASX:TLS) have fallen 0.51 per cent, trading at $3.90. Shares in M2 Telecommunications Group Limited
(ASX:MTU) and Telecom Corporation of New Zealand
(ASX:TEL) are slightly higher.
Gold and the dollar
Gold is trading at $US1,768 an ounce.
The Australian dollar is buying $US1.034.
