The Australian share market is trading half 0.5 per cent higher at noon, after US and European markets lifted overnight, as optimism mounts that a deal to avert the fiscal cliff is close.
The S&P/ASX 200 index is 23 points up at 4,619. On the futures market the SPI is 18 points higher.
Economic news
The Westpac-Melbourne Institute’s leading index of economic activity has shown a fall in the annualised growth rate to 2.9 per cent in October, from 4.1 per cent in September. The index tracks growth in the Australian economy three to nine months into the future.
Company news Billabong International Limited’s
(ASX:BBG) has issued another profit warning while a takeover bid for the company is at risk of collapsing after details of the proposal were leaked to the media. The latest proposal marks the fifth for the year, The surfwear retailer’s shares have fallen more than 11 per cent today as it emerged from a trading halt. Billabong’s shares have retreated about 66 per cent over the year. The company has forecast its full-year underlying EBITDA to now be between $85 to $92 million due to weaker than expected sales in October and November. A review of all assets will be conducted at the end of the month. Shares in Billabong are trading down 10.97 per cent at $0.87.
Sims Metal Management Limited
(ASX:SGM) has lowered its forecasts for its first half earnings by 20 per cent. The scrap metal recycler says its underlying EBITDA in the six months to 31 December was now in the range of $87 to $97 million a significant decline from the $110-120 million estimate provided a month ago. Sims Metal attributes challenging market conditions to the earnings downgrade. Shares in Sims Metal Managment are trading down 3.65 per cent at $8.97.
Best and worst performers The best performing sector is utilities gaining 73 points to 5,305. Shares in Energy World Corporation Limited
(ASX:EWC) have risen 3.95 per cent and trading at $0.40. Shares in Spark Infrastructure Group and SP AusNet are also stronger.
The only major sector down is telco services, falling 6 points to 1,466. Shares in Singapore Telecommunications Limited
(ASX:SGT) have fallen 2.64 per cent, trading at $2.58. Shares in Telstra are lower whilst TPG Telecom is higher at noon.
Gold and the dollar
Gold is trading at $US1,676 an ounce and the Australian dollar is buying $US1.051.
