Australian Stock Market Report – Midday June 27, 2014
By Steven Daghlian, CommSec Market Analyst | June 27, 2014 1:02 PM EST
The Australian sharemarket is flat after a 1.1 per cent surge yesterday. Global markets overnight ended mixed while a firmer ore price is helping the miners. Despite an uninspiring finish to the week, local stocks have still improved by 0.8 per cent over the past five days.
A truck drives past piles of iron ore at the dump site of a port in Rizhao, Shandong province in this October 3, 2013 file photo. Chinese steel and iron ore futures extended recent losses on April 14, 2014, pressured by a weak outlook for demand in the world's top consumer of the two commodities. A seasonal pickup in steel consumption in China is unlikely to be enough to prop up steel prices given downside risk to economic growth and Beijing not keen on providing major stimulus measures. REUTERS/China Daily/Files
Australia's third largest iron ore miner Fortescue Metals (FMG) is up 2.3 per cent, while the larger BHP Billiton (BHP) and Rio Tinto (RIO) are both up modestly. The iron ore price rose by 1.7 per cent overnight and is 3.3 per cent firmer this week. Despite a 29 per cent slump in the ore price this calendar year, this is the first week since mid-April that the price of ore is improving.
Power interruptions at Sydney Airport's T2 Domestic Terminal are leaving thousands of frustrated travellers waiting for their flights. The outage is believed to have started at 8.30am (AEST); however Sydney Airport (SYD) shares are only 0.1 per cent weaker. Qantas (QAN) is 0.3 per cent higher and Virgin Australian (VAH) is flat despite both their respective domestic airlines being impacted.
Gambling and entertainment business Tatts Group (TTS) is up 3.2 per cent following a favourable ruling from the Victorian Supreme Court yesterday. TTS shares rose by 4.3 per cent yesterday as it could be on the receiving end of a $450 million compensation payout by the Victorian government.
Weakness from the major banks is holding back the rest of the market at lunch.
At lunch, 1.1 billion shares have been traded worth $4.11 billion. 451 stocks are higher, 410 are in the red and 407 are unchanged.
No major economic news is scheduled for release in Australia or the region today. A European Union Economic Summit will be held tonight while the results of a survey on consumer confidence will be a highlight in the U.S.
The Australian dollar has strengthened and currently buys US94.2c; close to breaking through a seven-month high against the greenback.
Next week in Australia data on retail spending, building approvals, the monthly Reserve Bank Board Meeting and data on the property market will be in focus.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
Join the Conversation
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- The Pirate Bay Blockade: Cost Of Blocking Websites Like TPB Is Ridiculously High
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu
- Virginia Woman Who Posted Naked Image Of Ex-BF’s New Partner 1st Person Charged Under Revenge Porn Law
- Meizu MX4 Pro To Arrive In November In Black And White Colours, Features Higher Than QHD Display, Exynos 5430 SoC And 3 GB RAM
- Israel Loses A Friend in UN Security Council As New Zealand Replaces Australia
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery