The Australian share market fell 0.7 per cent at open after global markets dropped, despite the European Central Bank’s (ECB) surprise decision to cut rates to a fresh record low. Traders remain jittery about the US Federal Reserve’s timeline for tapering economic stimulus after better than expected US growth figures supported the case for pulling back.
Though stocks have risen from the morning’s low the mining and energy sectors remain weak after commodity prices softened and ahead of Chinese data due this afternoon. Fortescue Metals Group Limited's
(ASX:FMG) stock has been sold-off after reports emerged Canadian miner Teck Resources is looking to sell its whole $503 million stake in the iron ore miner.
Westpac Banking Corporation
(ASX:WBC) is weighing on the banking sector with the blue-chip stock trading ex-dividend today.
Figures
The S&P/ASX 200 index has dropped 26 points to 5,396. On the futures market the SPI is 19 points lower.
Company news
Australia’s largest investment bank Macquarie Group Limited
(ASX:MQG) is reportedly gearing up to launch an $800 million all-cash bid for Lloyds Banking Group's Scottish Widows asset management arm. A number of media reports speculate Macquarie would add the business to its Macquarie Funds Group if successful.
Real estate investment trust Commonwealth Property Office Fund
(ASX:CPA) has entered a trading halt ahead of an announcement by its suitors Dexus Property Group
(ASX:DXS) and Canada Pension Plan Investment Board regarding their proposed takeover of the property trust.
Shares in Allied Healthcare Group Limited
(ASX:AHZ) have jumped after the health care company completed its first sale of CardioCel into Europe after receiving its first orders from outside Australia.
Shares in Sedgman Limited
(ASX:SDM) have retreated after the mining service provider’s latest outlook cited challenging and weak trading conditions, on-going delays in project approvals and awards and forecast first half earnings to fall to a net loss of up to $8 million.
Best and worst performers
Consumer staples have risen at noon, lifting 35 points to 10,172. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have firmed 0.67 per cent and trading at $12.05. Shares in Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) are also stronger.
The resources sector has slumped to the worst performer at noon, tumbling 125 points to 10,028. Shares in Fortescue Metals Group Limited
(ASX:FMG) have dropped 5.18 per cent, trading at $5.41. Shares in Newcrest Mining Limited
(ASX:NCM) and Atlas Iron Limited
(ASX:AGO) are also lower.
Gold and the dollar
Gold is trading at $US1,307 an ounce.
The Australian dollar is buying $US94.5 cents.
