News: Midday: US growth pushes ASX up, AUD down

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In the wake of strong GDP figures from the US, local markets have seen slight gains today. And the US Federal Reserve offered advice overnight, indicating that interest rates will stay near zero for some time to come and, as expected, the Fed further slowed its bond buying program. 

 

The Australian dollar has dropped to US$0.9321 today as the strong GDP figure fuelled the greenback’s rally.

 

The banks have seen gains this morning with CBA and Westpac both up by more than 0.8 per cent.

 

The S&P/ASX 200 index is 15 points up at 5,638. On the futures market the SPI is 8 points higher.

 

Economic news

The Australian Bureau of Statistics has shown a drop in housing approvals for June, the seasonally adjusted figure was down 5 per cent last month after a jump of 10.3 per cent was recorded in May.

 

Company news

 

AGL Energy Limited (ASX:AGK) has installed the first modules for Australia’s largest solar plant. The gas and electricity company is building the 102MW Nyngan solar plant in Western NSW with expectations that it will produce enough power for 33,000 homes annually. The company will build the plant along with the 53MW Broken Hill solar plant at a cost of $440 million with $166.7 million in funding coming from the Australian Renewable Energy Agency, while the NSW government will chip in $64.9 million. Shares in AGL Energy are trading flat at $14.75

 

Aerial photo mapping company Nearmap Limited (ASX:NEA) has launched an insurance service utilising its up to date visual analytics. The company says its interactive flood simulation feature will offer insurers timely data to help them measure risk with a simplified process of research and assessment. Shares in Nearmap are trading up 3.57 per cent at $0.43

 

Best and worst performers

The best performing sector is health care, gaining 0.9 per cent to 14,604. Shares in Sigma Pharmaceutical Limited (ASX:SIP) have risen 1.29 per cent and trading at $0.79. Shares in CSL Limited (ASX:CSL) and Virtus Health Limited (ASX:VRT) are also stronger.

 

The worst performing sector is utilities, falling 0.8 per cent to 5,940. Shares in Spark Infrastructure Group (ASX:SKI) have fallen 1.81 per cent, trading at $1.90. Shares in APA Group (ASX:APA) and Envestra Limited (ASX:ENV) are also lower.

 

Gold and the dollar

Gold is trading at $US1,295 an ounce.

The Australian dollar is buying $US0.9321