Australian Stock Market Report – Midday 7/13/2012

BREAKING NEWS: China´s GDP (economic growth) for 2nd quarter has come in at 7.6%

Retail sales up 13.7% (beat market forecasts), GDP 7.6% (in-line), ind production 9.5% (worse than expected).

AUD up to US101.5c. Market up 0.63%

LUNCHTIME REPORT
(11.50am AEST)

Local stocks are trading marginally higher at lunchtime in the East, ahead of the release of key Chinese data. After six sessions of losses, investors are moving back into the market with the All Ordinaries Index (XAO) firmer by 8.8pts or 0.2pct to 4114.8.

June quarter economic growth figures or GDP are being released out of China shortly, and could show the weakest growth in the country in three years. Yesterday mining stocks were sold down heavily. In early trade iron ore miner Fortescue Metals Group (FMG) is trading down a further 3.7pct to $4.495 while Rio Tinto (RIO) is weaker by 0.5pct to $53.99. BHP Billiton (BHP) is slightly firmer, up 0.2pct to $30.47.

Elsewhere financial stocks are generally tracking higher. Shares in Westpac (WBC) are best out of the big four banks, firmer by 1pct to $22.09 while Macquarie Group (MQG) is slightly weaker at $25.29.

More trouble in the retail space today, with the owner of womenswear brands Katies and Millers, Specialty Fashion (SFH), warning its full year earnings are set to halve. SFH shares are down 4pct to $0.50 in early trade. The overall consumer discretionary sector is firmer by 0.2pct.

The Australian dollar has dropped to its lowest level in two weeks against the greenback over renewed concerns about Spain's borrowing costs. At lunchtime in the East, the Aussie is buying US101.37c, €83.05c and £0.6568.

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