The Australian share market and dollar have fallen this morning amid fears the US Federal Reserve could pull back stimulating America's economy sooner than expected. Dismissing the Fed chairman’s assurances stimulus will continue for now – investors have piled out of the market.
The broader bourse has sunk 1.4 per cent, to the session’s low, while the Aussie dollar has hit a one-year low.
Australia’s ailing manufacturing sector has also been dealt a blow following confirmation 1,200 jobs are set to go after car marker Ford announced it will close all major local operations by 2016.
Figures
The S&P/ASX 200 index has plunged 71 points to 5,094 . On the futures market the SPI is 72 points lower.
Company news Oil and gas explorer Beach Energy Limited
(ASX:BPT) is expanding its exposure in Queensland’s Cooper Basin, where the majority of its production is generated. Beach plans to form a new joint venture Bengal Energy (TSE:BNG) under which Beach will acquire acreage from Bengal and fund an oil exploration program in the Tookoonooka area. Beach says it is focused on unlocking the potential of this underexplored area of the Copper Basin. Shares in Beach Energy are trading 1.19 per cent lower at $1.25.
Shares in OTOC FPO
(ASX:OTC) have surged after securing a $28.7 million federal government contract for an Australian offshore refugee processing centre. The provider of resources and infrastructure services will work on Stage 1 of the Nauru Processing Centre which will comprise of a facility for 900 people. OTOC says the latest award continues to diversify its earnings profile, order book and geographic reach. Shares in OTOC are trading 32 per cent higher at $0.07.
Best and worst performers The best performing sector is health care gaining 17 points to 13,114. Shares in Primary Health Care Limited
(ASX:PRY) have risen 0.2 per cent and trading at $5.12. Shares in Ansell Limited
(ASX:ANN) are higher while shares in Sirtex Medical Limited
(ASX:SRX) are steady at noon.
The worst performing sector is telco services, dropping 39 points to 1,735. Shares in TPG Telecom Limited
(ASX:TPM) have fallen 8.57 per cent, trading at $3.52. Shares in M2 Telecommunications Group Limited
(ASX:MTU) and Telstra Corporation Limited
(ASX:TLS) are also lower.
Gold and the dollar
Gold is trading at $US1,359 an ounce.
The Australian dollar is buying 96.62 US cents.
