The Australian share market opened slightly higher this morning and has moved into positive territory propped up by the mining sector and despite falls on US and European markets overnight.
The S&P/ASX 200 index is 20 points up at 4,502. On the futures market the SPI is 26 points higher.
Economic news
The International Monetary Fund (IMF) has trimmed its 2013 forecast for Australia's economy and warned of sluggish global growth for this year and next. In its latest World Economic Outlook report, the IMF says Australia's economy will grow by 3 per cent next year, a downgrade from its previous April forecast of 3.5 per cent due to a slowdown in commodity exports.
Company news
Surfwear retailer Billabong International Limited
(ASX:BBG) has appointed Dr Ian Pollard as Director and Chairman of its board. Dr Pollard has held a number of senior appointments including Chairman of Just Group and served as a Director of the OPSM Group. Billabong is still in takeover talks with long time suitor US private equity firm TPG Capital. The company’s annual general meeting is scheduled for later this month. Shares in Billabong are trading up 2.97 per cent at $1.04.
BHP Billiton Limited
(ASX:BHP) is reportedly announcing its first local bond deal in almost a decade. The global miner will issue Australian dollar denominated bonds. Benchmark sales are expected to be about $500 million. Australia and New Zealand Banking Group
(ASX:ANZ) and CBA Commonwealth Bank of Australia
(ASX:CBA) will serve as joint managers. BHP sold $5.4 billion of notes in Euros and British pounds last month. Shares in BHP Billiton are trading up 0.84 per cent at $33.53.
Best and worst performers
The best performing sector is Materials gaining 87 points to 10,171. Shares in Fortescue Metals Group Limited
(ASX:FMG) have risen 3.77 per cent and trading at $3.85. Shares in Atlas Iron and Intrepid Mines are also stronger.
The worst performing sector is Consumer Staples, falling 18 points to 8,625. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have fallen 0.93 per cent, trading at $13.88. Shares in Woolworths Limited
(ASX:WOW) and Treasury Wine Estates Limited
(ASX:TWE) are also lower.
Gold and the dollar
Gold is trading at $US1,779 an ounce and the Australian dollar is buying $US1.022.
