Australian Stock Market Report – Midday 6/7/2012

MIDDAY REPORT
(12.25pm AEST)

The Australian share market has hit a six day high in early trade, on the back of better than expected jobs numbers. 38,900 jobs were created in the Australian economy in May, versus expectations of slight job losses. However the April numbers were revised, ticking the May unemployment rate from 4.9pct to 5.1pct. At lunchtime in the East, the All Ordinaries Index (XAO) is firmer by 60pts or 1.5pct to 4164.7.

Energy, financial and mining stocks are leading the gains on the back of impressive moves on global markets overnight. Wall Street posted its best one day percentage gain of the year, reversing Friday's losses. The Federal Reserve's "Beige Book", which gives an indication of how 12 key US areas are faring, showed few signs of an economic slowdown. Investors are also upbeat ahead of hopes Fed Chairman Ben Bernanke could hint at a third round of stimulus measures, or QE3, when he fronts Congress in Washington tonight.

One stock heading south locally is pallet provider Brambles (BXB). The company has come back online after raising $333 million through an institutional share sale venture. Institutional investors took up 83pct of the discounted shares Brambles is offering, in an attempt to add $448 million to its balance sheet. It's hoped retail investors will snap up the extra $115 million when it's offered to them tomorrow. At lunchtime, BXB is trading lower by 3.8pct to $6.50.

The Australian dollar received a boost on the better than expected jobs numbers and at 12.20pm AEST is worth US99.57c, £0.6431 and €79.21c.

[Kick off your trading day with our newsletter]