Sydney, Oct 3, 2007 (ABN Newswire) - The share market was struggling for direction today. Financial stocks rose on receding worries about global credit markets, while some of the big mining firms having made strong gains over the last few sessions pulled back.

And the S&P/ASX 200 Index closed steady at 6660, and on the futures market the SPI 200 closed down 2 points.

In economic news, new vehicle sales rose in September. According to the Australian Federal Chamber of Automotive Industries, new vehicle sales rose 4.4 per cent. Over 780,000 vehicles have been sold so far this year that's an increase of 8.3 per cent over the same period last year.

The full report is available at the following video and audio links.

Video Link

http://abnnewswire.net/fnnlnk/58I28441

Audio Link

http://abnnewswire.net/lnk/57638AFJ


In company news, Australia's competition watchdog has given Rio's proposed buyout of Canada's Alcan, the thumbs up. The ACCC says there will not be a lessening of competition in the sector caused by the planned acquisition. The deal has already received regulatory approval in Canada, the United States, and Europe. A successful transaction will make the world's biggest aluminium producer. Shares in Rio Tinto closed 2.25% lower at $109.97.

And according to Woolworths, the price of food is set to rise significantly. Chief executive Michael Luscombe told the National Press Club in Canberra today that the drought, coupled with export demand from India and China, means that the cost of food is going to increase significantly. He said the current plight of grain crop in eastern Australia will have impacts on meat, dairy, bakery, eggs and hundreds of processed food items. He also told the Press Club he was very concerned that this drought's full effects are yet to be fully appreciated by the Australian consumer. Shares in Woolworths closed 1.97% higher at $30.59.

In other news today, shares in Engin jumped on speculation key shareholder, the Seven Network, could be considering a full takeover of the firm.

Online job advertiser SEEK fell after UBS downgraded the firm from buy to a sell, saying the firm's share price had run ahead of its operating fundamentals.

RAMS Home Loans continued to struggle for support today investors continuing to take a negative view on its deal with Westpac.

Fortescue Metals continued its impressive run today hitting the $50 mark. This is despite the company yet to ship a single tonne of ore.

Now to today's best and worst performers, the best performing index was the Consumer Staples index gaining 93 points to 8456, while the worst performing index was the Materials index shedding 213 points to 15,607.

Energy Developments was the best performer in the S&P/ASX top 200 surging 9.49% to $3.46; MFS Limited and Western Areas also gained.

Lynas Corp was the worst performing stock today shedding 8.21% to $1.28 and-a-half cents; Mount Gibson Iron and Macarthur Coal also retreated.

To commodities now, gold is currently trading at $735.40 US an ounce and light crude is 24 cents firmer at $80.29 US a barrel.

Source: Finance News Network © 2007 http://www.finnewsnetwork.com.au

About Finance News Network

Finance News Network (FNN) has been producing up-to-date concise business and finance news tailored to traders and investors alike since 2002. FNN content reaches a diverse and constantly growing audience via online streaming video, Street Vision broadcasts and the Telstra 3G mobile phone network.
http://www.finnewsnetwork.com.au

About Finance News Network

Finance News Network (FNN) has been producing up-to-date concise business and finance news tailored to traders and investors alike since 2002. FNN content reaches a diverse and constantly growing audience via online streaming video, Street Vision broadcasts and the Telstra 3G mobile phone network.
http://www.finnewsnetwork.com.au