The Australian market has continued yesterday’s rally with the Australia 200 Index up 25 points after the GDP results introduced a pull-back from its high.
Gross Domestic Product (GDP) advanced 0.3 percent from the September announcement but missed the 0.7 percent expected by analysts resulting in a fall of the Australian Dollar and a 15 point fall in the index. GDP is an indicator of economic health and missing the estimate suggests our economy is more sluggish then the broad market anticipated and will help to lower the expectation of investor returns.
The AUD/USD declined from 84.60 to 84.00 US cents, a four year low, within moments of the GDP announcement.
TEN Network (TEN) has declined 7.5 percent to 22 cents per share after Discovery Communications and Foxtel lodged a $605 million conditional, non-binding, takeover bid of 23 cents per share. Several weeks ago, Discovery and Foxtel made a 26 cent offer that was revised down after management briefings.
Trading volumes are lower today and likely to stay deflated in the lead up to Christmas.For further comment from CMC Markets please call 02 8221 2124