Overseas Market Report – Stocks End Lower; Pfizer Deal, Commodity Prices Eyed
U.S. stocks finished lower on Monday as commodity prices and M&A activity were eyed.
This followed a rebound last week that delivered the largest weekly gain for the S&P 500 in nearly a year. Sharp November swings in stocks have put the S&P 500 on track for a gain of 0.6% this month.
Existing U.S. home sales were down 3.4% in October from the previous month to a seasonally adjusted annual rate of 5.36 million. Economists had expected sales to come in at 5.4 million. Sales have slowed down as housing prices rise–the median sale price was up 5.8% year over year.
At the close, the Dow was 0.2% lower, the S&P 500 was down 0.1% and the NASDAQ was flat.
For Australian ADRs listed on the NYSE, BHP Billiton slipped 67 cents (2.30%) to $28.43, ResMed fell 67 cents (1.13%) to $58.45, Telstra Corporation added 2 cents (0.13%) to $19.51, Spark New Zealand shed 3 cents (0.28%) to $10.58 and Westpac declined 8 cents (0.35%) to $23.00.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.25% and the 5-year yield was 1.68%.
Pfizer (PFE) and Allergan (AGN) announced that are merging in a $155-billion deal. The deal is being structured as an inversion and the combined company will be based in Ireland in order to reduce its corporate tax rate.
Carl Icahn said he will solicit shareholders of AIG (AIG) to try and force the board to consider his proposal to break the firm into three parts. Icahn said he doesn't believe the current management team is seriously considering the idea.
European markets were lower as commodity price concerns weighed.
The FTSE 100, French CAC 40 and Germany's DAX were down 0.5%, 0.4% and 0.3%, respectively.
Asian shares finished mixed.
The Shanghai Composite dropped 0.6%, while the Hang Seng was off 0.4% and the Nikkei 225 rose 0.1%. India's Sensex fell 0.2%.
Australian Market Report – Local Market Expected To Open Lower
Ahead of the local open, SPI futures were 14 points lower at 5,271.
Monday 23 November – close. The Australian market extended its winning streaking to a fifth session in a row. After initial weakness, a rally led by the retailer giant Woolworths dragged the market higher, offsetting losses from resource and energy stocks. Most sectors finished higher, with the exception of energy and materials. The Australian dollar depreciated against most major currencies.
The All Ordinaries rose 21.00 points to 5,326.50 while the S&P/ASX 200 lifted 20.30 points to 5,276.40.
In This Issue
Macquarie Group (MQG)
Macquarie Group announced its intention to raise A$400m, with the ability to raise more or less, through the offer of Macquarie Group Capital Notes 2 (MCN2). MCN2 are expected to be quoted on the ASX under the code MQGPB. MCN2 are fully paid, unsecured, subordinated, non-cumulative, perpetual and convertible notes issued by MGL at an Issue Price of $A100 per MCN2. Distributions are scheduled to be paid semi-annually in arrears, subject to certain Payment Conditions. The record date of the offer is 20 November 2015. The opening date is 1 December 2015 and the closing date is 15 December 2015. MQG lost 9 cents to $82.91.
Veda Group (VED)
Veda Group announced that it has entered into a binding agreement with Equifax Inc (Equifax) whereby Equifax will acquire all of the shares of the Company at a price of A$2.825 cash per share, by way of a scheme of arrangement (Scheme). A Scheme Implementation Deed (SID) has been signed to give effect to this Transaction. Under the terms of the Scheme, the Company shareholders will be entitled to receive A$2.825 cash per share subject to all applicable conditions being satisfied or waived and the Scheme being implemented. The cash payment of A$2.825 represents an implied market capitalisation of A$2,506m and an implied enterprise value of A$2,617m for the year ended 30 June 2015, on a fully diluted basis. VED gained 6 cents to $2.75.
Recent Contacts & Presentations
NRW Holdings (NWH), OBJ Limited (OBJ), Tox Free Solutions (TOX), MMA Offshore (MRM), Decmil (DCG), CTI Logistics (CLX), TFS Limited (TFC), AWE Limited (AWE), Medusa (MML), Resolute (RSG), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP), Senex Energy (SXY), Paladin (PDN)