With investors biting their nails over a possible US government shutdown, the Australian share market fell by over 1 per cent at open and is 1.3 per cent weaker at noon. All the major sectors are trading lower at this stage, led down by Energy, while the Aussie dollar has dived to the day’s low on the back of Chinese manufacturing data missing expectations in September.
The S&P/ASX 200 index is 72 points down at 5,236. On the futures market the SPI is 76 points lower.
Economic news
Inflation remains soft in Australia, according to the TD Securities/Melbourne Institute Monthly Inflation Gauge, which rose 0.2 per cent in September, following a 0.1 per cent rise in August and an increase of 0.5 per cent in July. The latest read takes the yearly gauge to 2.1 per cent, and leaves inflation at the bottom end of the Reserve Bank's 2 to 3 per cent target band, giving the Central bank room to cut the cash rate further if needed.
The Reserve Bank of Australia says Credit growth in the private sector remained subdued in August, rising by just 0.3 per cent, below its 0.4 per cent growth in July. Credit was up 3.4 per cent in the 12 months to August. The latest figures come despite expectations that an improved property market would spur increased borrowing levels.
Company news
OZ Minerals Limited
(ASX:OZL) shares have jumped in early trade after a British newspaper reported that multinational miner Glencore Xstrata is considering a takeover offer after acquiring up to a 10 percent stake. Oz has released a statement to the market this morning advising it has not been approached by Glencore in regard to any proposal. Shares in OZ Minerals are trading up 3.17 per cent at $4.55.
Funtastic Limited
(ASX:FUN) shares have climbed in early trade after the toy company announced a 34 per cent lift in its full year net profit of $13.96 million. CEO Stewart Downs says recent changes to the business, including its ownership of brands, would make it a more stable and predictable business. Shares in Funtastic are trading up 6.9 per cent at $0.155.
Best and worst performers The sector with the fewest losses is Real Estate Investment Trusts shedding 4 points to 1,020. Shares in Federation Centres Limited
(ASX:FDC) have risen 0.88 per cent and trading at $2.29. Shares in DEXUS Property Group
(ASX:DXS) and BWP Trust
(ASX:BWP) are also stronger.
The worst performing sector is Energy, falling 275 points to 14,097. Shares in Paladin Energy Limited
(ASX:PDN) have fallen 5.88 per cent, trading at $0.48. Shares in Linc Energy Limited
(ASX:LNC) and Senex Energy Limited
(ASX:SXY) are also lower.
Gold and the dollar
Gold is trading at $US1,339 an ounce and the Australian dollar is buying $US0.9288.
