Australian Stock Market Report - Midday 11/02/2011

LUNCHTIME REPORT (12.30pm AEDT)

The local share market is being heavily sold off at lunchtime in the East, after US and European share markets tumbled overnight on fears the European bailout package could be jeopardised. Greece's Prime Minister unexpectedly called for a public referendum on the package, causing investors around the globe to sell out of equities on fears the Greek public won't accept it. The All Ordinaries Index (XAO) is down 63.5pts or 1.5pct to 4233.7.

Financial stocks are under the most pressure, following heavy selling in banking stocks offshore. Morgan Stanley fell 8pct in New York, while French banks lost between 12 and 16pct. Westpac (WBC) has today released its FY profit, up 10pct to $6.99 billion. The more closely watched cash profit rose 7pct to $6.3 billion, in line with consensus. Westpac shares are down 2.6pct to $21.36.

An earnings downgrade from Onesteel (OST) has seen its share price tumble 15.4pct to $1.015, taking down BueScope Steel (BSL), which is lower by 6pct to $0.785.

The Australian dollar has lost ground as investors flee back to the safety of the greenback and is worth US103.48c, £0.6472 and €75.4c.

[Kick off your trading day with our newsletter]