Australian Stock Market Report – Midday December 12, 2014

A man looks at screens displaying market information as he walks past the Australian Stock Exchange in central Sydney July 4, 2013. Australian shares rebounded 1 percent on Thursday, as Wall Street rose modestly higher overnight and a rise in metals prices underpinned mining stocks, but political turmoil in Portugal and concerns on slowing growth in China pared early gains. REUTERS/David Gray (AUSTRALIA - Tags: BUSINESS)

 Australian shares are falling slightly for the fourth day with gains across US markets and a pause in energy sector selling helping to minimise losses. The ASX 200 Index is down 0.1 per cent with the mining industry the main drag. Plenty of monthly economic news in China this afternoon at 4.30pm AEDT (after the close of the Australian market) might keep investors a little cautious today.

 US shares improved for the first time this week overnight. Better than expected retail spending statistics for November and fewer Americans filing for unemployment benefits last week were catalysts for the gains.

 Caltex (CTX) is up by 2.9 per cent after saying it expects a 40 per cent rise in annual profit to between '$450-$470m yesterday. CTX surged by 2.9 per cent yesterday.

 Santos (STO) is up 2.4 per cent after seven straight days of falls. The oil and gas producer yesterday said it would cut its capital expenditure by $700m next year and recently had its credit rating cut by Standard & Poor's.

 Westpac (WBC) said it expects the Australian economy to gradually improve next year thanks partly to low interest rates and a weaker Australian dollar at its Annual General Meeting today. Australia's second largest bank by market capitalisation is down by 0.5 per cent.

 Leighton Holdings (LEI) has announced its agreement to sell its John Holland business for around A$1.15bn to CCCC International. The company is the largest design and construction company in China and the world's fourth largest. This comes only a day after announcing an agreement to design and build the new Northern Beaches Hospital in Sydney.

 Volume is light at lunch with 582.4m shares traded worth $1.4bn. 360 stocks are up, 389 are down and 243 are unchanged.

 Chinese data will be in focus this afternoon when released at 4.30pm AEDT. This will include updates on investment, retail spending and production. This could keep volume a little lighter than usual today as the reports won't be issued until after the local market's close.

 The Australian dollar buys US$0.826, €0.66, £0.52 and ¥98.2. Our currency has been pushed lower by falling commodity prices, a firmer greenback and comments by the Reserve Bank Governor last night who mentioned a weaker Australian dollar is preferable.

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