The Australian share market heeded strong European leads to open higher ahead of the RBA’s September rate call this afternoon, and is 0.2 per cent up at noon, with gains in the Materials sector keeping the market above water at the moment. The Aussie dollar reacted unfavourably to the morning’s economic news, dropping a quarter of a cent on the release of retail data and current account deficit numbers.
The S&P/ASX 200 index is 9 points up at 5,198. On the futures market the SPI is 11 points higher.
Economic news
The Australian Bureau of Statistics says retail spending rose by 0.1 per cent to $21.82 billion in July, short of economist forecasts of a 0.4 per cent rise.
Also from the ABS, Australia’s current account deficit widened to $9.35 billion in the June quarter, following a deficit of $8.74 billion in the March quarter. The median market forecast was for a deficit of $8.5 billion.
Company news
Infigen Energy Limited
(ASX:IFN) has reportedly secured planning approval to proceed with a divisive $200 million wind farm in central New South Wales. According to media reports, the approval follows a NSW health commission into community concerns regarding potential health issues linked to noise from the turbines. NSW Health says there is no published scientific evidence linking wind turbines with health defects, clearing the path for the 33 turbine farm to proceed. Shares in Infigen are trading flat at $0.28.
Ramelius Resources Limited
(ASX:RMS) will acquire the Vivien gold project in Western Australia from a subsidiary of New York listed Gold Fields for $10 million. Ramelius has announced a share placement to raise $5 million, with funds to be directed towards finalising the acquisition of the high grade Vivien gold project. Shares in Ramelius are trading up 5 per cent at $0.21.
Best and worst performers The best performing sector is Materials gaining 127 points to 9,768. Shares in Atlas Iron Limited
(ASX:AGO) have risen 5.06 per cent and trading at $0.83. Shares in CuDeco Limited
(ASX:CDU) and Lynas Corporation Limited
(ASX:LYC) are also stronger.
The worst performing sector is Consumer staples, falling 121 points to 10,009. Shares in Woolworths Limited
(ASX:WOW) have fallen 1.33 per cent, trading at $35.62. Shares in Wesfarmers Limited
(ASX:WES) and Treasury Wine Estates Limited
(ASX:TWE) are also lower.
Gold and the dollar
Gold is trading at $US1,393 an ounce and the Australian dollar is buying $US0.8999.
