Following positive leads from the US, the Australian share market reversed recent losses to open higher and at noon was up 0.7 per cent.
US markets were in the green despite first quarter GDP figures contracting by 2.9 per cent in annualised terms. Investors on Wall street appear to have shrugged off the slowdown in growth with an eye focussed on the likelihood of interest rates staying lower for longer.
The S&P/ASX 200 index is 38 points up at 5,440. On the futures market the SPI is 53 points higher.
Economic news
The Australian Bureau of Statistics has reported that job vacancies have lifted in the May quarter. In the three months to May vacancies rose by 2.1 per cent on the February quarter, seasonally adjusted.
Company news
Caltex Australia Limited
(ASX:CTX) has forecast first-half profits coming in lower than last year’s as well a loss in the refining and supply division.
The petroleum company’s historic cost profit after tax for the half is forecast to be down to between $150 million and $170 million, from $195 million in 2013. The company says the conversion of the Kurnell refinery is partly to blame with production impacts weighing on the refining and supply division. Shares in Caltex are trading down 0.46 per cent on the news to $21.49.
Sandfire Resources
(ASX:SFR) has commenced deep drilling to test an EM conductor detected 400m below the surface.
The gold miner is drilling as part of a farm-in joint venture with Talisman Mining Limited (ASX:TLM) at the Springfield Copper and Gold Project. Shares in Sandfire are trading up 1 per cent at $6.09.
Best and worst performers The best performing sector is consumer discretionary gaining 25 points to 1,790. Shares in STW Communications Group Limited
(ASX:SGN) have risen 7.36 per cent and trading at $1.39. Shares in Tandou Limited
(ASX:TAN) and Domino's Pizza Enterprises Limited
(ASX:DMP) are also stronger.
The worst performing sector is real estate investment trusts, falling 2 points to 1,076. Shares in Charter Hall Retail REIT
(ASX:CQR) have fallen 2.74 per cent, trading at $3.91. Shares in Australand Property Group
(ASX:ALZ) and Stockland Corporation Limited
(ASX:SGP) are also lower.
Gold and the dollar
Gold is trading at $US1,319 an ounce.
The Australian dollar is buying $US0.9405
