The Australian share market has continued to retreat into technical correction territory – trading 1.3 per cent down at noon despite the release of better than expected local employment figures. Negative leads thrust the Australian share market down at open as investors continue to worry about the length of time the US Federal Reserve plans to continue stimulating the American economy.
Figures
The S&P/ASX 200 index has sunk 62 points to 4,663. On the futures market the SPI is 67 points down.
Economic news
Australia’s official labour data has surprised with the numbers coming in better than expected. The Australian Bureau of Statistics (ABS) reports the economy added 1,100 jobs in May - against expectations the economy would lose 10,000 jobs. The ABS also showed Australia’s unemployment rate stayed steady at 5.5 per cent last month - against expectations it would rise to 5.6 per cent.
The World Bank has cut its expectations for global growth in 2013. The international financial institution now expects the global economy to grow at an annual rate of 2.2 per cent, down from a forecast of 2.4 per cent at the beginning of this year. While developing countries are expected to grow at an annual pace of 5.1 per cent this year, growth in the 17-member bloc euro-zone is expected to contract 0.6 per cent.
Company news Leighton Holdings Limited
(ASX:LEI) is set to build a new $180 million facility for the University of Sydney Business School. The construction giant’s subsidiary John Holland will start on the project next month, which is due to be finished early 2015.
Shopping Centres Australasia Property Group
(ASX:SCP) has inked a deal to buy seven shopping centres for $135.8 million. The Woolworths Limited
(ASX:WOW) property spinoff also today announced an equity raising to fund the acquisition.
Westpac Banking Corporation
(ASX:WBC) has bought back $US3.75 billion in government guaranteed debt in a move geared to reducing the bank’s refinancing requirements in fiscal 2014.
Shares in Alacer Gold Corporation CDI
(ASX:AQG) have jumped after the gold producer revealed it is pursuing the sale of its Australian assets after receiving expressions of interest from several parties.
Stocks and sectors The sector with the smallest losses is financials excluding real estate investment trusts losing 11 points to 5,913. Shares in FKP Property Group
(ASX:FKP) have risen 2.55 per cent and trading at $1.21. Shares in Westpac Banking Corporation
(ASX:WBC) are trading higher while shares in Suncorp Group Limited
(ASX:SUN) are lower.
The worst performing sector is consumer discretionary falling 39 points to 1,494. Shares in Seven West Media Limited
(ASX:SWM) have fallen 5.46 per cent, trading at $1.95. Shares in Fairfax Media Limited
(ASX:FXJ) and Ardent Leisure Group
(ASX:AAD) are also lower.
Gold and the dollar
Gold is trading at $US1,390 an ounce.
The Australian dollar is buying 94.84 US cents.
