Australian Stock Market Report – Midday 4/5/2012

LUNCHTIME REPORT
(11.30am AEST)

The Australian share market has started the final day of the shortened trading week on a negative note, as profit takers move in ahead of the Easter break and following weakness on offshore markets overnight. US and European markets retreated following a disappointing Spanish bond auction and as investors anxiously debated what markets would look like without more stimulus from the US Federal Reserve. In early trade on the local market, the All Ordinaries Index (XAO) is down 34.5pts or 0.8pct to 4384.4.

Selling is across the board, with shares in the ANZ Bank (ANZ) down 0.7pct to $22.85 and Rio Tinto (RIO) weaker by 2.1pct to $65.03.

Harvey Norman (HVN) is trading without rights to its dividend, sending its share price lower by 4pct in early trade to $1.8725.

There is no local economic data being released today and the Australian dollar has fallen further against the greenback. At 11.30am AEST the Aussie is worth US102.75c, €78.13 and £0.6461.

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