Australian Stock Market Report - Midday 3/8/2012

LUNCHTIME REPORT
(12.30pm AEDT)

Despite an initial dip when the February jobs numbers were released, the local share market is trading higher at lunchtime in the East, following positive offshore leads. The All Ordinaries Index (XAO) is firmer by 21.3pts or 0.5pct to 4255.7.

US and European markets moved higher overnight, with investors more optimistic private sector creditors will agree to the Greek debt swap deal by tonight's deadline. Investors were also encouraged by a solid reading on the US jobs front, with 216,000 jobs added to the private sector in February.

Our own employment data released today was a little more disappointing. 15,400 jobs were lost in February taking the unemployment rate from 5.1 to 5.2pct. Western Australia has the lowest unemployment rate at 4pct, while Tasmania's unemployment rate is the highest at 7pct.

On the share market; energy, mining and financial stocks are making a comeback after a couple of sessions of weak games. Rio Tinto (RIO) shares are up 1pct to $63.01 while the Commonwealth Bank (CBA) is firmer by 1.4pct to $48.32.

The Australian dollar is a little weaker against the greenback, buying US105.54c, £0.671 and €80.31c.

Juliette Saly, CommSec Market Analyst

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