Midday: Aus shares higher

Aussie shares have shrugged off a flat lead from Wall St to be 0.8 per cent higher at noon. Benign inflation data out this morning suggesting the RBA is unlikely to raise rates tomorrow.

The S&P/ASX200 index is up 35 points at 4,697 and on the futures market, the SPI200 is up 51.

In economic news: TD Securities-Melbourne Institute monthly inflation gauge increased by 0.3 per cent in October, up over a 0.1 per cent rise the month before. While the Australia Bureau of Statistics reported the weighted average of eight capital cities increased a modest 0.1 per cent in the September quarter, after a 3.1 per cent increase in the quarter before and the lowest rise since the March quarter last year.

To company news: Macquarie Group Ltd (ASX:MQG) has come under fire from the head of the Australian Competition and Consumer Commission, Graeme Samuel for the way in which it dealt with small business owners who had been impacted by a finance scam. According to the ABC Macquarie is taking legal action against hundreds of small businesses who have been caught by the scam that mislead customers into signing agreements known as telephony bundling, that teams together telecommunications services with electronic goods and other equipment. The ABC’s Four Corners program is expected to show tonight how Mr Samuel hit a brick wall when he personally asked the investment bank’s CEO Nicholas Moore to be reasonable with the affected small business customers. Shares in Macquarie Group are 0.99% stronger at $36.56.

UGL Ltd (ASX:UGL) has been awarded $250 million in rail fright orders with leading rail operators and resource companies. Among the freight supply and maintenance orders include a five-year locomotive service and support deal with Rio Tinto Ltd (ASX:RIO) in Western Australia. The engineering and construction company says its rail business continues to see clear signs of a recovery in sales enquiries on the back of strengthening resources sector conditions. Looking ahead UGL anticipates a healthy expansion in its rail business in fiscal 2011. Shares in UGL are 0.81% firmer at $14.86.

Turning now to market indices: The best performing sector is Financials Excluding Real Estate Investment Trusts, with the index up 62 points to 5,171. Shares in Challenger Financial Services Group are up 2.17% to $4.70. Shares in Westpac and Macquarie Group are also higher. The worst performing sector at midday is Consumer Staples, with the index down 45 points to 8,046. Shares in Goodman Fielder have fallen 1.01% to $1.47. Shares in Metcash and Woolworths are also lower at midday.

To New Zealand now, the NZSX50 is up 7 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is at the top of the list with stock up 0.98% at $2.07 followed by; Fletcher Building, Westpac and Guinness Peat Group.

To gold and the dollar: Gold is trading at $1358 US an ounce and the Aussie dollar is trading at 98.5 US cents.

Aussie Shares Flat at midday – andre di cioccio

The local share market is flat at midday following a positive lead from Wall St overnight as mounting expectations that the US Federal Reserve will move to stimulate the economy in its next meeting caused US stocks to rise. Firmer metals prices are also helping to lift local resource stocks today.

The S&P/ASX200 index is up 4 points at 4,629 and on the futures market, the SPI200 is up 3.

To company news: Iron ore miner Fortescue Metals Group Ltd (ASX:FMG) has placed its shares in a trading halt pending an announcement from the company. While it did not give a reason for the trading halt, The Australian Financial Review says the miner may be looking to inform shareholders of a $2.02 billion blowout at its Solomon expansion facility revealed in its provisional prospectus shown to overseas investors. On Monday Fortescue announced plans to sell US$2.04 billion in bonds. Shares in Fortescue Metals Group last traded at $6.20.

Transfield Services Ltd (ASX:TSE) says its order book remains strong and it is pursuing both organic and acquisitive growth to boost its capabilities in key areas. Speaking at the company’s annual general meeting chairman Tony Shepard said Transfield has emerged from the global financial crisis in better shape than before. Mr Shepard says this year has been an exciting year of change for the company, with a new CEO and a considerably strengthened management team now firmly in place and an approved corporate strategy that is already being executed. He told investors that there is significant potential in the US in oil and gas driven by the country’s aim to be self-sufficient in both, and the move to onshore production following the oil spill in the Gulf of Mexico. Shares in Transfield Services are 0.28% lower at $3.52.

Turning now to market indices: The best performing sector at midday is Consumer Staples, up 68 points to 8,219. Shares in Goodman Fielder are up 2.47% to $1.45. While shares in Foster’s Group and Coca-Cola Amatil are also higher at noon.

The worst performing sector at midday is Utilities, with the index down 51 points to 4,483. Shares in AGL Energy have fallen 1.81% to $16.31. Shares in SP AusNet and APA Group are also lower at noon.

To New Zealand now, the NZSX50 is up 13 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand tops the list with stock down 0.49% at $2.02 followed by; ANZ, Fletcher Building and Westpac.

To gold and the dollar: Gold is trading at $1346 US an ounce and the Aussie dollar is trading at 98.5 US cents.