With a lack of leads from the US the Australian share market opened slightly lower before pushing marginally higher at noon as investors begin to digest a range of economic indicators.
The Reserve bank will meet this afternoon but already today we’ve seen that the Australian current account deficit has widened for the second quarter of this year. Also from the ABS we’ve had a read on building approvals for July with a 2.5 per cent increase month on month, which is in contrast to last month’s fall of 3.8 per cent.
And the ANZ – Roy Morgan consumer confidence survey has shown a dip in sentiment with concerns about household finances being the major drag.
The S&P/ASX 200 index is 4 points up at 5,633. On the futures market the SPI is 8 points higher.
Economic news
The ABS has reported an expanded current account deficit for the June quarter of this year, Australia’s trade deficit has grown 76 per cent to almost $14 billion, seasonally adjusted. The ABS says the drop in the surplus on goods and services is likely to detract 0.9 percentage points from the June quarter measure of GDP growth.
Company news
Flinders Mines Limited
(ASX:FMS) has reported significant iron ore results at its Pilbara Iron Ore Project.
The iron ore explorer says it’s discovered high grade, near surface iron deposits at its wholly owned project in Western Australia. The company will expand test drilling operations over the next two months for targets adjoining the Blackjack Resource which sits within the broader Pilbara Iron Ore Project. Shares in Flinders Mines are trading flat at $0.02
Tag Pacific Limited
(ASX:TAG) has won a solar power construction contract for Rio Tinto’s Alcan Weipa bauxite mine in Queensland.
The energy investment company signed the contract with First Solar to build the 1.7MW solar farm at a cost of $4 million. CEO Nathan Wise says the contract is the first step in the delivery of large-scale solar power projects for the mining sector. Shares in Tag Pacific are trading up 27.27 per cent at $0.14
Best and worst performers The best performing sector is energy, gaining 1.2 per cent to 15,243. Shares in AWE Limited
(ASX:AWE) have risen 3.63 per cent and trading at $1.78. Shares in Origin Energy Limited
(ASX:ORG) and Beach Energy Limited
(ASX:BPT) are also stronger.
The worst performing sector is utilities, falling 1.4 per cent to 5,979. Shares in AGL Energy Limited
(ASX:AGK) have fallen 3.33 per cent, trading at $13.65. Shares in DUET Group
(ASX:DUE) and APA Group
(ASX:APA) are also lower.
Gold and the dollar
Gold is trading at $US1,284 an ounce.
The Australian dollar is buying $US0.9315
