The SPI is pointing to a positive start for the Australian share market after European markets started the week higher. Local trading could be light in the absence of leads from Wall Street, remaining closed for US Memorial Day, and the UK pausing for a bank holiday on Monday. Traders could find support from European Union and Ukraine election results which buoyed equity markets across Germany, France and Spain overnight.
Global markets
Wall Street paused on Monday for the US Memorial Day public holiday: On Friday, The Dow Jones Industrial Average closed at 16,606, the S&P 500 closed at 1,901 and the Nasdaq closed at 4,186.
European markets lifted on Monday: While London's FTSE 100 paused for a bank holiday on Monday, France's CAC 40 lifted 34 points and Germany's DAX lifted 125 points.
Asian markets closed mixed on Monday: Japan’s Nikkei added 140 points, Hong Kong’s Hang Seng dipped 3 points, and China’s Shanghai Composite added 7 points.
The Australian share market rose into the trading week yesterday. The S&P/ASX 200 index gained 20 points to finish at 5,513. On the futures market the SPI is pointing 7 points higher.
Currencies
The Australian dollar at 7:20am was buying $US0.9244, 54.89 Pence Sterling, 94.23 Yen and 67.75 Euro cents.
M&A action
Australia’s largest listed wine maker Treasury Wine Estates Limited
(ASX:TWE) has again dismissed a $3.05 billion takeover bid from Kholberg Kravis Roberts. A letter to shareholders Chairman Paul Rayner submitted to the ASX yesterday evening says the board has considered the proposal and will take no further action. Treasury Wine Estates does not believe the cash offer of $4.70 per share reflects the fundamental value of the company. Shares in Treasury Wine Estates rose 1.55 per cent on Monday to close at $5.25 before the announcement was made.
The $1.8 billion takeover of Aurora Oil & Gas Limited
(ASX:AUT) by its North American suitor Baytex Energy has cleared one of its final hurdles. The dual listed oil and gas explorer has told the market the Federal Court of Australia has approved the scheme of arrangement. The company’s ASX shares are expected to be suspended from close of trading today and will also be suspended on the Toronto Stock Exchange. Shares in Aurora Oil & Gas closed steady on Monday at $4.19 before the announcement was made.
Ex-dividends today
Infratil Limited
(ASX:IFZ) paying a 6.48 cent unfranked dividend
Ex-dividends tomorrow
Aurora Sandringham Dividend Income Trust
(ASX:AOD) paying a 0.51 cent unfranked dividend
DuluxGroup Limited
(ASX:DLX) paying a 10 cent fully franked dividend
Commodities
Gold has lifted $0.90 to $US1,292.60 an ounce for the June contract on Comex.
Silver has firmed $0.03 to $19.45 for May.
Copper has gained $0.02 to $3.19 a pound.
Oil has slipped $0.17 to $US104.18 a barrel for July light crude in New York.
