The Australian share market opened almost half a per cent higher on jumps in Wall Street and is 0.4 per cent stronger at noon, with Washington sealing an 11th hour deal for a temporary budget and extension to the debt ceiling. The US senate announced a compromise to fully re-open the government just one day ahead of the US Treasury reaching the end of its borrowing limits. Locally, health stocks are leading gains at this stage.
The S&P/ASX 200 index is 19 points up at 5,282. On the futures market the SPI is 19 points higher.
Economic news
NAB has released its business survey for the September quarter, indicating that while Businesses gained confidence due to political factors in the period, conditions fell to their weakest level in four years. The survey showed current business conditions slumped to –7 points in the quarter, from –6 in the June quarter. Meanwhile, business confidence hit a 2 year high, recovering to +3 points from -1 in the June quarter. The slumping conditions were most keenly felt in the mining sector, which fell to a 14.5 year low, while manufacturing, retail, wholesale, transport, utilities and construction were also poor.
Company news
Newcrest Mining Limited
(ASX:NCM) has maintainted its full year production guidance despite increasing gold output by 27 per cent in the September quarter. The gold miner has also announced the securing of bilateral loan facilities for an extra $472.5 million from two banks, to provide additional liquidity headroom. Shares in Newcrest are trading down 0.78 per cent at $10.12.
Woodside Petroleum Limited
(ASX:WPL) has posted a 27 per cent fall in third-quarter sales after a temporary interruption at its Pluto LNG project. Revenue declined to $1.34 billion, from $1.83 billion a year earlier, falling short of analyst estimates. Earlier today, FNN reported that Woodside has been warned by the West Australian government that it will not be given free rein over how it develops the Browse gas project.
Shares in Woodside are trading down 1.22 per cent at $38.05.
Best and worst performers The best performing sector is Healthcare gaining 190 points to 13,966. Shares in CSL Limited
(ASX:CSL) have risen 2.05 per cent and trading at $67.62. Shares in Sigma Pharmaceutical Limited
(ASX:SIP) and Mesoblast Limited
(ASX:MSB) are also stronger.
The worst performing sector is Consumer Staples, falling 43 points to 9,833. Shares in Woolworths Limited
(ASX:WOW) have fallen 1.09 per cent, trading at $33.45. Shares in Wesfarmers Limited
(ASX:WES) are lower while Goodman Fielder Limited
(ASX:GFF) shares are flat at noon.
Gold and the dollar
Gold is trading at $US1,285 an ounce and the Australian dollar is buying $US0.9552.
