Australian Trade Deficit Doubles on Exports Decline of 3%

Marcus Jacob
07 Sep, 2012
New York City

Australian markets opened sharply higher after the ECB policy announcement and China offered to finance more infrastructure projects. Australian trade deficit soared in July to $556 million as exports fell 3% and imports decreased 1%.

[R]9:30 PM Sydney – Australian markets opened sharply higher after the ECB policy announcement and China offered to finance more infrastructure projects. Australian trade deficit soared in July to $556 million as exports fell 3% and imports decreased 1%.[/R]

Australian stocks traded higher after the European Central Bank offered the widely anticipated bond buying program to shore up the euro and China proposed to fund 55 infrastructure projects with $158 billion.

In domestic news, Australian exports decreased 3% to $25.8 billion and imports fell 1% to $26.3 billion, according to the data released by the Australian Bureau of Statistics.

The trade deficit in the month increased to $556 million from the revised $227 million in June after gold exports plunged 25% and metals and minerals sale fell 3%.

The ASX 200 index gained 12.90 to 4,325.80 and the broader All Ordinaries increased 17.11 to 4,348.75. For the week, the ASX 200 index inched up 0.2%.

The Australian dollar was nearly unchanged at US$1.0287 after the release of the trade statistics.

Stock Movers

Billabong International Limited extended gains for the second day by 5 cents to $1.41 after the company received a second takeover offer.

BHP Billiton Limited climbed 64 cents to $31.98 and, Rio Tinto Limited jumped $2.22 to or 4.4% to $52.38 and Fortescue Metals Group surged 34 cents or 11.4% to $3.31.

After the close, BHP said it sold its 37% interest in non-operated interest in Richards Bay Minerals to Rio Tinto.

Lynas Corporation Limited slid 2 cents to 82 cents, Iluka Resources gained 29 cents to $9.13. Newcrest Mining increased 24 cents to $25.84 after gold added more than $10 an ounce in international markets. Kingsgate advanced 15 cents to $4.50 and Whitehaven Coal increased 6 cents to $3.11.

Transfield Services up 8 cents to $1.77 billion; engineering contractors WorleyParsons gained 20 cents to $25.50 and Monadelphous Group climbed 70 cents to $20.50.

Oil Search Limited lowered 2 cents to $7.42 and Santos Limited increased 7 cents to $11.72 and Woodside Petroleum slipped 13 cents to $34.80. Sundance Energy edged up 1 cent to 72 cents.

Seven West Media down 3 cents to $1.33, Ten Network closed unchanged at 36.5 cents and Fairfax Media added 0.5 cents to 43.5 cents.

News Ltd jumped 34 cents to $23.86 after Jamie Packer controlled Consolidated Media backed the revised takeover plan from the company.

Harvey Norman Holdings closed unchanged at $1.99, Woolworths slumped 30 cents to $30.26 and Kathmandu down 1 cent to $1.37.

Commonwealth Bank of Australia decreased 12 cents to $54.60 and Bank of Queensland gained 6 cents to $7.60. ANZ lowered 5 cents to $24.16. National Australia Bank slid 5 cents to $25.06 and Westpac Banking Corporation slipped 20 cents at $23.70.

Macquarie Group climbed 24 cents to $27.81 and Perpetual Limited declined 36 cents to $26.74.

David Jones Limited added 2 cents $2.44 and Wesfarmers dropped 36 cents to $35.06. Billabong International Limited gained 5 cents to $1.41. Breville Group slid 2 cents to $5.40. Harvey Norman closed unchanged at $1.99.

Toll Holdings increased 6 cents to $4.66, Leighton advanced 22 cents to $15.17 and property developer Mirvac Group down 1 cent at $1.41.

Qantas surged 6 cent or 5% to $1.26 after the debt rating of the airline was cut to one notch above the junk status by the rating agency Standard & Poor’s.

Flight Centre jumped 80 cents to $24.30 and Virgin Australia slid 1.5 cents to 42.5 cents.

QR National closed unchanged at $3.45 and Telstra down 3 cents to $3.81.