Having received negative leads, the Australian market looks set to slide at open. On Wall St, US stocks fell amid uncertainty over its own debt situation and fears that Europe’s debt crisis has now extended to Italy.
US economic news
US President, Barack Obama, has affirmed his commitment to pushing for "the largest possible deal" with congressional leaders to approve a package of deficit cuts and increase the nation’s $US14.3 trillion federal debt ceiling.
Figures
On Wall St, the Dow Jones Industrial Average dropped 151 points to close at 12,506, the S&P500 lost 24 points to close at 1,319 and the NASDAQ fell 57 points to close at 2,803.
European stocks started the week lower: London’s FTSE was down 61 points, Paris down 106 and Frankfurt was down 172 points.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 379, Tokyo Nikkei was down 68 and China’s Shanghai Composite was up 5 points.
The Australian share market started the week more than 1.5 per cent down. The S&P/ASX 200 Index fell 72 points to close at 4,582. On the futures market the SPI is down 39 points.
Currencies
The Australian Dollar at 7:30AM was buying 1.066 US cents, 67.02 Pence Sterling, 85.55 Yen and 75.97 Euro cents.
Economic news
Due out today National Australia Bank’s monthly business survey for June and also Dun and Bradstreet’s business expectations survey.
Company news
Shares in Macarthur Coal Limited (ASX:MCC) ended 2.81 per cent lower on Monday at $11.08, after which a $4.7 billion joint takeover bid for the company was announced by mining giant, Peabody Energy and steel giant ArcelorMittal. Both companies seek to acquire at least 50.01 per cent of Macarthur and have offered $15.50 per share. Last year Macarthur rejected a $15 per share bid from Peabody. Macarthur has advised its shareholders to take no action as it considers the price and terms of the deal. In the second half of 2010 Macarthur Coal reported a profit of $141.2 million.
Shares in Bannerman Resources Limited (ASX:BMN) ended the day at $0.475, surging 23.38 per cent after receiving a takeover bid. The Africa-focused uranium miner has received a $144 million bid from China's Sichuan Hanlong Group. The offer price of $0.612 per share represents a 59 per cent premium to the company’s closing price before the announcement. Bannerman has previously been searching for a joint venture partner and says it will continue discussions with Hanlong, but has decided not to grant the company exclusivity. In the last six months of 2010, Bannerman booked a net loss of $4.9 million.
Commodities
Gold is up $7.60 to $US1,549 an ounce for the August contract on Comex, silver is down $0.85 to $35.70 for September and copper is down $0.04 to $4.37 a pound. Oil is down $1.05 at $95.15 a barrel for August light crude in New York.
