Australian Stock Market Report – Midday 7/4/13

MID-SESSION REPORT
(12.30pm AEST)

The Australian share market is back in the black in early trade on Thursday, following a volatile week where we have seen significant gains and losses.

Overnight, concerns about a political crisis in Portugal sent European markets lower, while US markets rose during a volatile and shortened trading session ahead of the Independence Day holiday.

Locally, energy stocks are among the best performers after the crude oil price rose above US$100 a barrel overnight to a 14 month high as tensions continued in the Middle East. Egyptian President Mursi was overthrown early this morning and remains under house arrest.

Elsewhere, shares in Crown Limited (CWN) are firmer by 2.3 per cent. James Packer's company remains the favourite to win Sydney's second casino licence to be announced by the NSW Government today. Echo Entertainment Group (EGP), which operates The Star casino in Sydney is slightly lower by 0.2 per cent to $3.035.

Telstra (TLS) shares are firmer by 1.1 per cent to $4.71 as the telco resumes work in some NSW telecommunication pits after an asbestos scare at NBN sites last month halted operations.

In economic data today, there's been a recovery in the home building sector. Approvals for fully detached homes rose by 2.5 per cent in May. However total building approvals fell 1.1 per cent across Australia, in line with expectations.

The Australian dollar has had a volatile 24 hours after Reserve Bank Governor Glenn Stevens yesterday hinted rates could be cut further, sending the Aussie to fresh 3 year lows. At lunchtime in the East the Aussie is buying US90.76c, £0.5949 and €69.86c.

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