The Australian share market followed Wall Street higher at open but has retreated to be flat per cent down at noon, with gains in blue chip mining stocks being offset by losses in the Consumer staples sector and the banks.
The S&P/ASX 200 index is 2 points down at 4,969. On the futures market the SPI is 5 points higher.
The Australian dollar
The Australian dollar has fallen to its lowest in 19 months on the back of another dramatic sell-off this morning. Earlier the local currency saw an abrupt fall of roughly half a US cent, hitting a trough of $US95.55. That represents its weakest level since October 2011. Overnight the dollar sagged following strong greenback supporting US economic data. In May alone, the dollar has tumbled nearly 8 per cent, mostly on speculation the US Federal Reserve may taper off its monetary stimulus soon amid signs of economic improvement.
The Australian dollar is currently buying $US0.9554.
Economic news
The Westpac-Melbourne Institute Leading Index fell to 3.9 per cent in March, below a 4.1 per cent reading in February but well ahead of its long term trend of 2.8 per cent. Analysts predict a downturn in mining investment and commodity prices will see a more pronounced negative impact as the year goes on.
Company news
Transfield Services Limited
(ASX:TSE) has secured a combined $157 million in contracts for works across its Australian and New Zealand business. Included in the works are contracts with SP Ausnet
(ASX:SPN) and Worley Parsons Limited
(ASX:WOR), demonstrative of what Transfield says is an ability to sustain long-term contracts with blue chip clients. Shares in Transfield Services are trading up 3.39 per cent at $0.92.
Aristocrat Leisure Limited
(ASX:ALL) shares have jumped in morning trade, after the gaming company revealed an 11.2 per cent increase in its first half net profit. The company has lifted its target payout ratio to 80 per cent of net profits from 60 per cent previously, taking advantage of strong operational performance in Australia. Shares in Aristocrat Leisure are trading up 6.91 per cent at $4.33.
Best and worst performers The best performing sector is Consumer Discretionary gaining 22 points to 1,610. Shares in ResMed Inc.
(ASX:RMD) have risen 2.67 per cent and trading at $5.20. Shares in Cochlear Limited
(ASX:COH) and CSR Limited
(ASX:CSR) are also stronger.
The worst performing sector is Consumer Staples, falling 123 points to 9,763. Shares in Wesfarmers Limited
(ASX:WES) have fallen 2.33 per cent, trading at $40.26. Shares in Metcash Limited
(ASX:MTS) and Woolworths Limited
(ASX:WOW) are also lower.
Gold
Gold is trading at $US1,384 an ounce.
