Banks are back: Aus shares 0.9% higher at noon

Market Reports

by Carolyn Herbert

Following positive leads from Wall Street after weaker than expected jobs data released on Friday, the Australian share market has launched itself into the black in the first two hours of trade and is tracking 0.9 per cent higher at lunchtime. It’s now looking like a rate hike by the Federal Reserve won’t come until December, so investors are happily snapping up the financials space, CBA and NAB in particular. We have also seen a bounce in commodity prices overnight, with the gold miners and energy stocks performing particularly well.

The S&P/ASX 200 index is 48 points up at 5,421. On the futures market the SPI is up 60 points.

Economic news

Inflation in Australia has risen in August according to the latest read from the TD Securities-Melbourne Institute. The gauge rose 0.2 per cent from July and is up 1.2 per cent on last year.

Company news

Collaborate Corporation Limited (ASX:CL8) says that its DriveMyCar business unit has launched a rental car offering for UberX driver partners in Brisbane and Melbourne. The company says it will expand its rental base to provide a range of vehicles sourced from an expanding base of supply partners, which include corporate fleets, automotive manufacturers and dealers in Sydney, Brisbane and Melbourne. CL8 says rideshare rentals are expected to provide significant impetus for growth of revenues of the DriveMyCar business. Shares in Collaborate are trading up 11.11 per cent at $0.02.

NEXTDC Limited (ASX:NXT) has been placed into a trading halt pending the release of an announcement by the company. The announcement relates to utilisation levels and a proposed capital raising. The halt will remain in place until the earlier of this Wednesday or when the announcement is released to the market. Shares in NEXTDC last traded at $4.10.

Best and worst performers

The best performing sector is Materials, gaining 2.15 per cent to 8,724. Shares in Alumina have risen 5.45 per cent and trading at $1.45. Shares in Evolution Mining and Saracen are also stronger.

The worst performing sector is Discretionaires, falling 0.41 per cent to 2,193. Shares in Super Retail Group have fallen 3.62 per cent, trading at $10.39. Shares in Nine Entertainment and Aristocrat Leisure are also lower.

IPOs

CoAssets Limited (ASX:CA8) started trading today. The Web-based real estate platform floated with an issue price of $0.40, opened at $0.40 and is currently trading at $0.40.

Gold and the dollar

Gold is trading at $US1,324 an ounce.
The Australian dollar is buying $US0.7582.


 

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