The Australian share market followed US markets lower this morning and is 0.8 per cent down at noon.
The selloff comes after a month of strong gains on Wall Street and the US dollar has rallied amid continued speculation about the timing of an increase in interest rates. The Aussie dollar sank below US$0.92 overnight.
Weakness in the Australian dollar has also flowed from a further slide in the iron ore price. The spot price for the steel making commodity is down to $US84/tonne which represents a new five year low.
The Westpac/ Melbourne Institute index gave us a read on consumer sentiment today with a sharp drop of 4.6 per cent in September, with the index falling to 94 points.
The S&P/ASX 200 indexis 46 points down at 5,562. On the futures market the SPI is 38 points lower.
Company news
Directors of Robust Resources Limited
(ASX:ROL) have recommended shareholders accept a takeover offer from Stanhill Capital Partners and Droxford International.
The offer of $0.49 per share for the gold and metals explorer represents a 56 per cent improvement over the current proposal from Stanhill. Chairman David King says the board is pleased with the outcome which provides shareholders with the opportunity to cash out now, for a substantial premium. Shares in Robust Resources are trading up 9.2 per cent at $0.48
Bentham IMF Limited
(ASX:IMF) has reported a successful outcome in a case funded by its US subsidiary, Bentham Capital.
The litigation funder will generate $16 million and a profit of $7.6 million after a settlement agreement was reached between the parties to the case. Shares in Bentham IMF are trading up 3.5 per centat $2.07
Best and worst performers All major sectors are down today. The sector with the least lossesis health care, losing 0.5 per cent to 15,324. Shares in Mesoblast limited
(ASX:MSB) are up 1.36 per cent and trading at $5.24. Shares in Virtus Health Limited
(ASX:VRT) is up and CSL Limited
(ASX:CSL) is lower.
The worst performing sector is consumer staples, falling 1.4 per cent to 10,042. Shares in Woolworths Limited
(ASX:WOW)have fallen 2.47 per cent, trading at $35.58. Shares in Tassal Group Limited
(ASX:TGR) and Wesfarmers Limited
(ASX:WES) are also lower.
Gold and the dollar
Gold is trading at $US1,256 an ounce.
The Australian dollar is buying $US0.9202.
