Oil & Wall St boost: Aus shares 0.63% higher at noon

Market Reports

by Jessica Amir

The Australian share market opened higher this morning as expected, following solid leads from Wall Street with the three major US indices etching record highs.

The local bourse shot up at 10am, but fell just before the employment reading from the ABS with investors sitting on the edge, anticipating the news. But, after the news came out, that employment gained, that saw ASX200 lift.

Most of the sectors are chiming higher today, with Energy leading the charge, after oil prices lifted by over 1 per cent overnight, following a big drop in US crude and gasoline stocks.

The ASX200 was 0.63 per cent up at noon.

The S&P/ASX 200 index is 36 points up at 5,768.

On the futures market the SPI is 37 points higher.

Asian markets

Japan’s Nikkei has added 0.4 per cent, Hong Kong’s Hang Seng lost 0.02 per cent and the Shanghai Composite has slipped 0.03 per ent.

Local economic news

Australia’s unemployment rate hit 5.6 per cent in June, in trend terms (the jobless rate fell by less than 0.1 per cent). 

The Australian Bureau of Statistics (ABS) also reported full-time employment rose for the 9th straight month.

It comes as total employment rose by 26,000 people, with full-time employment growing by 30,000 jobs and part-time employment falling by 4,000 workers.

To company news

South32 (ASX:S32) has experienced a fall in its year-on-year production for its FY17 across its business, excluding Aluminum and Manganese ore. The base metal and coal mining saw record performance at Mozal Aluminium, which underpinned its total 2 per cent production increase in aluminium for FY17. South32 also says consistent with its prior guidance it also invested US$28.8 million in exploration in the year ending 30 June 2017. Shares in South32 (ASX:S32) are trading 2.11 per cent lower at $2.78.

Bubs Australia (ASX:BUB) has partnered with Australia’s leading healthcare field service provider to enhance its presence and grow its distribution network. The baby food pouch business, entered into a distribution and field marketing service agreement with HealthOne. HealthOne provides sales and account management services to pharmacies around Australia. Bubs Australia says it also inked the deal to active its marketing and promotion initiatives. Shares in Bubs Australia (ASX:BUB) are trading up 3.77 per cent at $0.28.

The best and worst performers

The best performing sector is Energy, gaining 1.5 per cent to 8,887. Shares in Santos Limited (ASX:STO) have risen 7.45 per cent and trading at $3.25. Shares in Whitehaven Coal Limited (ASX:WHC) and Beach Energy Limited (ASX:BPT) are also stronger.

The worst performing sector is Utilites, falling 0.2 per cent to 8,441. Shares in AGL Energy Limited (ASX:AGL) have fallen 0.96 per cent, trading at $24.81. Shares in Ausnet Services Limited (ASX:AST are lower and APA Group (ASX:APA) are higher.

To commodities and the dollar

Gold is trading at $US1,240 an ounce and one Australian dollar is buying 79.53 US cents. 

 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.