Following positive US leads from Donald Trump’s ‘'phenomenal" tax cut promise, the Australian share market opened higher and is now tracking 0.73 per cent up at noon.
The Energy, Consumer Discretionary, Staples and Healthcare sectors are all trading about over 1% higher, while REITS and Industrials are proving to be the only drag on the Australian market.
The S&P/ASX 200 index is 44 points higher at 5,708.
On the futures market the SPI is 42 points higher.Local economic news
The RBA Cut its economic growth forecast by 1%. In the central banks’ Quarterly Statement of Monetary Policy, it forecast growth of 1.5 to 2.5% for the year to 30 June. The RBA says it was revised down on the back of a 0.5% fall in GDP for the September quarter. While it also noted weaker household spending.
The ABS reported stronger than expected lending figures for December, after owner occupied lending rose 1.3% (seasonaly adjusted) from November 2016. Meantime, investment housing finance (in trend terms) rose 1.7% in December.Company news
REA Group Limited (ASX:REA)
has announced an increase in earnings, profit and revenue for the first half of 2017, compared to the prior corresponding period. REA Group says despite lower listings in Australia, the company was able to deliver strong results on the back of innovation. Its recent takeover of iProperty also bolstered revenue. The online real estate advertising company’s EBITA rose 13%, its net profit rose 6%, while its revenue increased 16%, all compared to the prior corresponding period. Shares in REA Group Limited (ASX:REA)
are trading 1.16% lower to $53.53The best and worst performers
The best performing sector is Energy, gaining 1.41 per cent to 9,122.
Shares in Santos Limited (ASX:STO)
have risen 3.41 per cent and trading at $3.94.
Shares in Whitehaven Coal Limited (ASX:WHL)
and WorleyParsons Limited (ASX:WOR)
are also stronger.
The worst performing sector is REITS, falling 0.8 per cent to 1,365.
Shares in BWP Trust (ASX:BWP)
have fallen 1.55 per cent, to $2.87.
Shares in Dexus Property Group (ASX:DXS)
and Stockland Corporation Limited (ASX:SGP)
are also lower.Commodities and the dollar
Gold is trading at $US1,224 an ounce
The Australian dollar is buying US$0.7634