The Australian share market has opened flat and is trading 0.07 per cent lower at noon ahead of the US elections and the RBA’s interest rate decision tomorrow.
The S&P/ASX 200 index is 5 points down at 4,455. On the futures market the SPI is 2 points lower.
Economic news
Retail sales rose a little more than expected in September. The Australian Bureau of Statistics (ABS) has reported retail spending grew 0.5 per cent to almost $22 billion in September, after rising 0.3 per cent the month before.
The ABS has also reported Australia’s trade deficit shrank less than expected in September. Australia's trade deficit narrowed 22 per cent to almost $1.5 billion, as exports eased 1 per cent and imports fell 2 per cent.
Consumer prices rose last month, TD Securities and the Melbourne Institute’s monthly inflation gauge has shown consumer prices lifted 0.1 per cent in October, for an annual gain of 2.4 per cent last month.
Jobs advertisements in Australia have eased for a seventh straight. ANZ Banking Group’s
(ASX:ANZ) survey has showntotal jobs ads fell 4.6 per cent in October after falling 3.9 per cent the month before, meaning job ads are now 15 per cent down from October last year.
Australia’s services sector activity remained in contraction for the ninth straight month. The Australian Industry Group and Commonwealth Bank of Australia’s
(ASX:CBA) Performance of Services Index has added 0.9 points to 42.8 points in October, remaining below 50 which indicates contracting activity.
Company news
Hanling Africa Mining says it has secured a financier commitment letter from China Everbright Bank for $US438 million to fund its acquisition of Sundance Resources Limited
(ASX:SDL). The iron ore producer says new finance, coupled with the previously announced $US1.02 billion in commitments from China Development Bank, was in excess of the amount required by the Scheme Implementation Agreement. Shares in Sundance Resources are trading up 2.14 per cent at $0.36.
Telstra Corporation Limited
(ASX:TLS) says will offer investors an Australian dollar denominated bond offer. Australia and New Zealand Banking Group
(ASX:ANZ), Commonwealth Bank of Australia
(ASX:CBA), National Australia Bank Ltd.
(ASX:NAB) and Westpac Banking Corporation
(ASX:WBC) will lead the offer. The telco affirmed last week it expects to deliver low single-digit growth in revenue and earnings for the 2013 financial year. Shares in Telstra are trading up 0.24 per cent at $4.10.
Best and worst performers The best performing sector is Utilities gaining 22 points to 4,959. Shares in APA Group
(ASX:APA) have risen 1.97 per cent and trading at $5.18. Shares in Duet Group and AGL Energy are also stronger.
The worst performing sector is Consumer Discretionary, falling 11 points to 1,246. Shares in Ten Network Holdings Limited
(ASX:TEN) have fallen 2.54 per cent, trading at $0.29. Shares in Super Retail Group and David Jones are also lower.
Gold and the dollar
Gold is trading at $US1,681 an ounce and the Australian dollar is buying $US1.035.
