Market closes flat despite early gains
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The market reacted to new figures that show annual economic growth has fallen to its lowest level in seven years. (REUTERS: Daniel Munoz, file photo)
The Australian share market has closed flat after it slipped back earlier gains.
The All Ordinaries index has risen just three points to 3,477 and the ASX200 closed six points higher at 3,534.
The retailers have surged, with Harvey Norman and JB Hi-Fi both up around 7 per cent.
Qantas has gained 4.4 per cent to $2.35, on the confirmation it is in merger talks with British Airways, after the Federal Government revealed plans to relax foreign ownership restrictions.
The Federal Government says a merger between Qantas and British Airways would need to be in Australia's national interest to be approved.
West Australian Newspaper Holdings says its chief executive Ken Steinke, chairman Peter Mansell and two directors are stepping aside.
The changes come hot on the heel of Channel Seven chairman Kerry Stokes and his business partner, Peter Gammel's appointment to the board, after Channel Seven upped its stake in the company.
WAN's shares are up 1.2 per cent to $5.09, but Seven is down 1 per cent.
Official figures show the farming sector helped save the Australian economy from falling backwards in the September quarter.
The National Accounts show the economy expanded by just 0.1 per cent in the quarter, but if farming is not included, it shrank by 0.3 per cent.
Today figures showed annual economic growth is down from 2.9 to 1.9 per cent.
BHP Billiton is scaling back manganese production at its Samancor operations in Australia and South Africa, by more than 20 per cent because of weak steel market conditions.
But its shares have closed nearly 3 per cent higher at $27.81.
Spot gold is worth $US777.90 an ounce and a barrel of West Texas crude oil is worth $US47.05.
At around 5:00pm AEDT the Australian dollar was worth 64.51 US cents, 60.15 yen, 43.3 UK pence, and 50.74 euro cents.
BankWest and St George have become the latest banks not to pass on the Reserve Banks 100 basis point rate cut.
Both banks will reduce their variable mortgage rate by 0.85 of a percentage point.
St George says it can not pass on the full reduction because its funding costs remain too high.
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