The S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) has ended flat, down just 4.3 points to 4,308.3, as China’s inflation rate fell below 2% for the first time in two and a half years triggering fears of a slowdown in Australia’s biggest export market.
The Australian dollar has risen against the greenback, trading just under 106 US cents, bouyed by the unemployment rate that remained steady at 5.2%. Economists had expected a slight rise to 5.3%.
Telstra Corporation (ASX: TLS) has reported its first growth in four years, with earnings up 5.4% to $3.4 billion, as the company added 1.6 million new mobile customers during the year. Despite the good news, the share price fell 2.3% to $3.88.
Rupert Murdoch’s News Corporation Limited (ASX: NWS) announced an underlying operating income of US$5.6 billion, but has taken a US$2.8 billion writedown on its publishing business, most of it attributed to its Australian operations. Investors didn’t appear to like the news much, punishing the share price which dropped 3.2% to $21.88.
Gaming and entertainment group Tabcorp Limited (ASX: TAH) has reported a 3% increase in revenues to $3.0 billion, while underlying profit rose 12.7% to $340m over 2011. The big issue for Tabcorp and its shareholders though, is the termination of its Victorian poker machine licence next week and the likely negative impact on its earnings.
Webjet Limited (ASX: WEB) shares have closed up 4% to $3.65, as the company reported a 24% increase in net profit over the previous year, despite a generally flat travel market.
Winners and losers
The Foolish bottom line
It appears that hopes of stimulus moves by US and European Central Banks are fading. On the other hand, China’s official inflation target is 4%, and with Chinese inflation falling below 2%, reports in Fairfax media have speculated that the low rate could allow China to stimulate growth in its economy. That could be good news for our resources companies.
If you’re in the market for some high yielding ASX shares, look no further than our ”Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.
- Telstra finally dials up growth
- Raining on Rio’s parade
- Read this before you buy resources shares
- Australian dollar flying high – Aussie tourists to benefit
Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned. The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm