Australian Stock Market Report – Midday 6/13/2012

LUNCHTIME REPORT
(12.10pm AEST)

Despite strength on global share markets overnight and a relatively solid start to trade, the Australian share market is in the red at lunchtime in the East, dragged down by banking, mining and energy stocks. The All Ordinaries Index (XAO) is lower by 13.6pts or 0.3pct to 4104.7.

Overnight, US investors appeared to shrug off worries about the European banking system after a Federal Reserve Board member hinted at more stimulus. Financial stocks staged a relief rally however locally banking stocks are being sold off with the ANZ (ANZ) down 1pct to $21.55 and the Commonwealth Bank (CBA) lower by 0.6pct to $50.54.

Qantas (QAN) shares continue to rise on takeover speculation, with shares in the airline up 1.9pct to $1.095.

Consumer confidence received a slight pick-up in the month of June, on the back of the 25 basis point interest rate cut and stronger than expected economic growth or GDP numbers. The Aussie dollar though has dropped on the numbers and is currently worth US99.37c.

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