As global markets reacted negatively to the Bank of Japan’s decision to forego further stimulus measures, the Australian share market dived into the red at open and are 0.7 per cent down at midday, having touched a 5 month low in early trade. The Aussie dollar saw a brief half cent spike on the back of a slight recovery in consumer confidence, however has retreated somewhat at midday, despite hovering a cent higher than its overnight lows. Among the sectors, telco services is the only major in positive territory at this stage.
The S&P/ASX 200 index is 32 points down at 4,726. On the futures market the SPI is 37 points lower.
Economic news
Consumer confidence recovered slightly in June but fell well short of peaks experienced earlier this year, as fears around the prospects for the Australian economy persist. The Westpac Melbourne Institute Index of Consumer Sentiment rose 4.7 per cent in June to sit above the key 100-point threshold at 102.2, from 97.6 in May.
Company news
James Hardie Industries PLC
(ASX:JHX) has appointed Matthew Marsh, a senior executive from GE, to replace outgoing CFO Russell Chenu.
Marsh will join the building materials maker later this month, after a 17 year stint with GE, where is currently serves as CFO of GE Healthcare's IT business. Shares in James Hardie are trading down 1.55 per cent at $9.50.
Japanese financial services provider Nomura has downgraded its rating of NIB Holdings Limited
(ASX:NHF) ahead of a strategy update due from the health insurer this Friday. According to Nomura, government policy changes have detracted from the attractiveness of health insurance to high income earners. Shares in NIB are trading down 3.04 per cent at $2.23.
Best and worst performers The best performing sector is Telco services gaining 16 points to 1,603. Shares in M2 Telecommunications Group Limited
(ASX:MTU) have risen 2.59 per cent and trading at $5.54. Shares in iiNet Limited
(ASX:IIN) and Telstra Corporation Limited
(ASX:TLS) are also stronger.
The worst performing sector is Consumer discretionary, falling 16 points to 1,529. Shares in Fairfax Media Limited
(ASX:FXJ) have fallen 4.02 per cent, trading at $0.54. Shares in Aristocrat Leisure Limited
(ASX:ALL) and Myer Holdings Limited
(ASX:MYR) are also lower.
Gold and the dollar
Gold is trading at $US1,376 an ounce and the Australian dollar is buying $US0.9463.
