The Australian share market has hit a fresh 16 month high in early trade and is 0.7 per cent up at noon after Wall Street rose overnight amid renewed enthusiasm surrounding positive progress in US budget discussions.
The S&P/ASX 200 index is 32 points up and has broken through the 4600 barrier to reach 4,606. On the futures market the SPI is 37 points higher.
Economic news
The Reserve Bank of Australia (RBA) says its interest rate decision earlier this month was influenced by the belief that Australia’s mining boom is reaching its peak. The RBA says short term investment outlook in sectors outside of resources remains subdued, supporting the boards decision to provide interest rate support.
Company news
Commonwealth Bank of Australia
(ASX:CBA) has increased its investment in Aussie Home Loans from 33 to 80 per cent and now has the right to move to full ownership. The acquisition of Aussie hinges on CBA obtaining clearance from the Australian Competition and Consumer Commission. Under CBA ownership Aussie home loans will continue to operate as a standalone financial services provider.
Shares in CBA are trading up 0.78 per cent at $61.77.
Bank of Queensland Limited
(ASX:BOQ) has reportedly been issued a caution that its rating will be cut if it cannot conquer its debt issues.
According to Fairfax reports, leading international credit agency Fitch Ratings has issued the warning, and also expressed concerns over BOQ’s concentration in Queensland, given the states economy outside the mining sector is under duress. Shares in Bank of Queensland are trading down 0.07 per cent at $7.21.
Best and worst performers The best performing sector is Consumer Staples gaining 109 points to 8,832. Shares in Woolworths Limited
(ASX:WOW) have risen 1.49 per cent and trading at $29.66. Shares in Wesfarmers Limited
(ASX:WES) and Goodman Fielder Limited
(ASX:GFF) are also stronger at midday.
The worst performing sector is Real Estate Investment Trusts, the only major sector lower at the moment, falling 3 points to 978. Shares in Investa Office Fund
(ASX:IOF) have fallen 1.32 per cent, trading at $2.98. Shares in Mirvac Group
(ASX:MGR) and DEXUS Property Group
(ASX:DXS) are also trading lower at noon.
Gold and the dollar
Gold is trading at $US1,697 an ounce.
The Australian dollar is buying $US1.055.
