The Australian share market is in negative territory at noon amid mounting fears over the partial US government shut-down and protracted debt ceiling debate.
While US investors were buoyed by hopes of a resolution in Washington on Friday, negotiations have so far been unsuccessful and that has local investors increasingly worried.
So much so - the S&P/ASX 200 index is 33 points down at 5,198. On the futures market the SPI is 39 points lower.
Economic news
The demand for home loans has fallen more than expected in August. The number of home loans granted in August fell a seasonally adjusted 3.9 per cent to 49,912. Total housing finance by value fell 1.2 per cent in August, seasonally adjusted, to $23.8 billion.
Company news
BlueScope Steel Limited
(ASX:BSL) has agreed to acquire Arrium’s Limited
(ASX:ARI) OneSteel sheet and coil processing and distribution businesses. BlueScope says it will pay inventory value at completion, which was about $23 million at September 30. Shares in Bluescope are trading 1.4 per cent lower at $4.93.
OZ Minerals Limited
(ASX:OZL) shares are plunging after the copper and gold miner said it would miss it’s full year production target. The miner says copper production will slide by as much as 14 per cent to between 70,000 and 78,000 tonnes. Shares in Oz Minerals are currently trading down 6.82 per cent at $4.10.
Best and worst performers The best performing sector is REITS which is relatively flat at 1,033. Shares in Cromwell Group
(ASX:CMW) have risen 1.04 per cent and trading at $0.97. Shares in Federation Centres Limited
(ASX:FDC) and Abacus Property Group
(ASX:ABP) are also in the best performer basket.
The worst performing sector is Energy, falling 148 points to 13,686. Shares in Drillsearch Energy Limited
(ASX:DLS) have fallen 3.75 per cent, trading at $1.16. Shares in Karoon Gas Australia Limited
(ASX:KAR) and Senex Energy Limited
(ASX:SXY) are also lower.
Gold and the dollar
Gold is trading at $US1,273 an ounce and the Australian dollar is buying $US94.39.
