Australian Stock Market Report – Midday 7/10/13

MIDDAY REPORT
(12pm AEST)

• The Australian share market is holding at one month highs in early trade on Wednesday, following gains on US and European markets overnight. US stocks managed to make it four wins in a row as investors were encouraged by the start of the earnings season. Aluminium giant Alcoa was first to report, with its earnings coming in in line with market expectations.

• Alumina (AWC), listed on our market which has a joint venture with Alcoa, is firmer by 2.9 per cent to $1.06 at lunchtime in the East.

• The overall materials sector is the best performing on the market following a broker upgrade on the resources sector in London overnight.

• Elsewhere, concerns over a secret recording of News Corp chief Rupert Murdoch allegedly playing down the significance of wrongdoing at his tabloid newspapers is playing havoc with shares in the new News Corp (NNC) and 21st Century Fox (FOX). NNC shares are lower by 2.8 per cent to $17.08 while FOX is down 1.3 per cent to $32.94.

• Virgin Australia's trans-Tasman alliance with Air New Zealand (AIZ) looks set to continue after the consumer watchdog said it intended to reauthorise the partnership. VAH is lower by 0.6 per cent at lunchtime in the East to 44.75c while AIZ is down 0.8 per cent to $1.21.

• Consumer sentiment remained virtually unchanged in July. Retail stocks are generally lower on Thursday.

• Chinese data released today showed exports fell 3.1 per cent on the year while imports were down 0.7 per cent on the year to June. China's trade surplus came in at $27.1 billion in the month.

• The Australian dollar has moved from highs to near US92c to US91.44c on the Chinese data.

• So far on the market, 692 million shares have changed hands, worth $1.7 billion. 442 are up, 266 are down and 272 are unchanged.

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