Following a sell-off on global markets overnight the Australian share market has shed 1 per cent. Sentiment has been given a hit from rising geopolitical tensions and concerns about China’s economic growth prospects. The miners have tumbled after the price of iron ore continued to decline and touched another fresh five-year low. Tech stocks have also dropped after the Nasdaq slumped almost 2 per cent overnight while gold stocks are looking up as traders turn to perceived safe havens. The Australian dollar has lifted back above $US0.88 after hitting a new seven-month low overnight.
Figures
The S&P/ASX 200 index has shed 57 points to 5,326. On the futures market the SPI is 52 points lower.
Company news
BHP Billiton Limited
(ASX:BHP) has entered into an alliance with Mexican state petroleum company Pemex. Under the memorandum of understanding both companies will work with each other and exchange information relating to the oil and gas industry. Australia’s biggest miner says it sees considerable opportunity in the South American country following Mexico’s recent economic reforms. BHP also believes it is well placed as Mexico seeks partners to develop its enormous petroleum resources. Shares in BHP Billiton have dropped 1.55 per cent to $34.25 at noon.
Woolworths Limited
(ASX:WOW) is cutting the price of more consumer staples as the battle for customers continues. The supermarket giant’s latest price cuts are on beef mince, carrots and onions after earlier delivering specials on the price of products such as milk, nappies and cereal. The latest announcement comes one week after Woolies cut the price of a loaf of Homebrand white bread from $1 to a new low of $0.85. The move has been matched by rival supermarket Coles who are also selling store-brand loaf for $0.85. Shares in Woolworths have fallen 0.86 per cent to $34.68 at noon.
Best and worst performers
All sectors are trading in the red: The sector with the smallest losses is utilities, falling 0.7 per cent to 5,814. Shares in DUET Group
(ASX:DUE) have firmed 0.42 per cent and trading at $2.41. Shares in Spark Infrastructure Group
(ASX:SKI) are steady while shares in AGL Energy Limited
(ASX:AGK) are trading lower at noon.
The worst performing sector is energy, sinking 1.3 per cent to 14,178. Shares in Beach Energy Limited
(ASX:BPT) have fallen 2.92 per cent, trading at $1.41. Shares in Caltex Australia Limited
(ASX:CTX) and Liquefied Natural Gas Limited
(ASX:LNG) are also lower.
Gold and the dollar
Gold is trading at $US1,226 an ounce.
The Australian dollar is buying $US0.8812.
