News: Midday: ASX dips before RBA call

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The US finished in the green overnight reversing some of last week's losses and while the Australian share market opened slightly higher this morning it was trading 0.4 per cent down at noon. 

 

The markets are poised in anticipation of the Reserve Bank of Australia’s monetary policy announcement this afternoon.

 

Also today Transurban and Downer Edi have reported rises in profit for the 2014 financial year while Cochlear booked a drop in profit while making record sales.

 

The S&P/ASX 200 index is 20 points down at 5,521. On the futures market the SPI is 19 points lower. 

 

Economic news

Australian Bureau of Statistics has reported its International trade in goods and services for June and while the trade balance remains in deficit, it has improved by 18 per cent on the May figure to sit just below $1.7 billion.

Australian Industry Group has reported its Performance of Services Index for July. While the index moved up from 47.6 to 49.3 points in July the print still remains in contraction.

 

Company news

 

AWE Limited (ASX:AWE) has commenced drilling at the Senecio-3 well in the Perth basin. The oil and gas explorer says the drill had reached 534m this morning and it’s hoped to reach a depth of 2,783m within five weeks. The well is aimed at testing the unconventional gas potential in the western side of the reservoir. Shares in AWE are trading down 0.86 per cent at $1.72

 

Ten Network Holding’s Limited (ASX:TEN) digital platform, tenplay, has reported record views in the last week. The television network says exclusive content from the Commonwealth Games in Glasgow as well as online viewing of shows such as MasterChef Australia pushed tenplay into its best week to date. Shares in Ten Network are trading flat at per cent at $0.28

 

Best and worst performers

The best performing sector is health care, gaining 1 per cent to 14,215. Shares in Cochlear Limited (ASX:COH) have risen 7.91 per cent and trading at $67.49. Shares in Sirtex Medical Limited (ASX:SRX) and Virtus Health Limited (ASX:VRT) are also stronger. 

 

The worst performing sector is consumer discretionary, falling 0.8 per cent to 1,806. Shares in Crown Resorts Limited (ASX:CWN) have fallen 3.92 per cent, trading at $15.20. Shares in Southern Cross Media Group Limited (ASX:SXL) and Echo Entertainment Group Limited (ASX:EGP) are also lower. 

 

IPO 

Bellamy’s Australia Limited (ASX:BAL) started trading today. The baby food maker floated with an issue price of $1.00, opened at $1.31 and is currently trading at $1.26

 

Gold and the dollar

Gold is trading at $US1,288 an ounce.

The Australian dollar is buying $US0.9320.