Australian Stock Market Report – Midday 7/6/2012

MIDDAY REPORT
(12pm AEST)

Local stocks are trading in the red on the final session of the week, following weakness in European markets and a mixed finish on Wall Street overnight. The European Central Bank cut interest rates by 0.25pct to a record low of 0.75pct as expected overnight, yet the move failed to excite investors, who instead decided to book profits. US investors were treading water ahead of the key monthly jobs report coming out tonight. At lunchtime in the East, the All Ordinaries Index (XAO) is down 18.5pts or 0.4pct to 4191.4.

Energy stocks are amongst the worst performers, with the sector down 1pct after crude oil eased to US$87.22 a barrel in New York trade. Shares in Santos (STO) are weaker by 2pct to $10.73 while Oilsearch (OSH) is off 0.5pct to $6.64.

Mining stocks are also weaker with shares in index leader BHP Billiton (BHP) down 1pct to $32.10 and Rio Tinto (RIO) off 1.2pct to $57.99.

Fairfax (FXJ) shares are trading lower after Australia's richest woman and the company's largest shareholder, Gina Rinehart sold a 3.7pct stake of FXJ right on close yesterday. FXJ shares are down 0.9pct to $0.58.

The Australian dollar is worth US102.6c, £0.6621 and €82.88c.

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