The Australian share market started the day off in promising fashion after gains from both US and European shares overnight. The US market broke a 7 day losing streak and Europe gained off the back of optimism that banks in the Euro zone will pass the stress tests released on the 23rd July. However over the last hour or so of trade the local market has turned and is now trading lower with the S&P/ASX 200 index down 0.6pct or 27.6pts to 4272.1.

The miners are the lone sector to support the market somewhat with BHP Billiton (BHP) up 0.75pct or 28cents to $37.43 and RIO Tinto (RIO) up 1.29pct or 84cents to $65.94. One of Australia's largest iron ore producers, Fortescue Metals (FMG) is currently unchanged.

Our retailers are also in the red with department store owner David Jones (DJS) down 1.13pct or 5cents to $4.37, Myer (MYR) weaker by 0.31pct or 1cent to $3.25. Australia's largest specialty retailer, Harvey Norman (HVN) is off by 1.15pct or 4cents to $3.44 and supermarket owner, Woolworths (WOW) is easing by 0.19pct or 5cents to $26.49.

Building and construction materials provider, Boral Limited (BLD) is still in a trading halt after announcing plans to raise $490 million via a capital raising yesterday.

Our banks are struggling to back up yesterday's strong gains and are down between 0.75pct to just over 1pct in early trade.

Wholesaler, manufacturer and retailer of pharmaceuticals, Sigma Pharmaceuticals (SIP) is rallying very strongly after receiving a reduced offer from South Africa's Aspen Pharmacare Holdings Ltd (APN:sj), which is listed on the Johannesburg stock exchange. The offer of 55cents per share values SIP at just under $648 million. Despite this being less than what was previously announced in May, it still is at a 20pct premium to the current trading price.

The Australian dollar (AUD) gained overnight and currently buys 0.8494 USD.

Provided by Comsec.com.au