Australian Stock Market Report – Midday 7/10/2012

LUNCHTIME REPORT
(12pm AEST)

European Finance Ministers have this morning agreed on a new bailout deal for Spain, which will see the country receive €30 billion in aid by the end of the month. The deal is expected to bring great relief for investors and comes after Spanish debts, or borrowing costs, climbed to dangerous highs overnight. At lunchtime in the East, the All Ordinaries Index (XAO) is up 6.4pts or 0.2pct to 4166.2.

After the bell on Wall Street, aluminium giant Alcoa came out with its earnings results which beat expectations. Alumina (AWC), listed on the Australian share market, has a 40pct stake in Alcoa. Its share price is currently steady at $0.755.

Shares in Telstra (TLS) have hit their highest level since February 2009, following good gains yesterday on defensive buying. In early trade Telstra is up 2pct to $3.855.

In economic data today, it seems recent interest rate cuts have done little to stop the fall in business confidence. The National Australia Bank (NAB) Monthly Business Survey shows business confidence index dropped one point to negative three points in June.

The Australian dollar is buying US102c, £0.6574 and €82.89c.

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