Sydney, Nov 5, 2007 (ABN Newswire) - Australian shares are expected to open higher today following a positive lead in the US. But the mood is likely to remain cautious amid lingering worries of a further fallout from the global credit squeeze.

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

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On Monday, the S&P/ASX200 finished down 132 points to 6,697. On the future's market the SPI200's up 25.

Turning to currencies, at 8:50AM the Aussie dollar was buying 92.16 US cents, On the crosses the dollar was buying 105.77 yen, 63.49 Euro cents, and 44.12 British pence.

To company news, and it's all about takeovers. Shares Wesfarmers were down 1.12 per cent to $43.26 and stocks in Coles Group were also lower, down 1.31 per cent $15.88. Wesfarmers is expected to win control of Coles Group with its $20 billion takeover offer. The large majority of shareholders have reportedly backed the bid which will see Wesfarmers become the owner of the nation's second largest retailer. It also means Coles' debt owners will benefit from the same guarantees that are given to Wesfarmers' own debt holders. Westfarmers net profit in 2007 was strong but down compared to its 2006 result, while that profit trend was much the same for Coles Group over the same two years.

Nufarm shares are in a trading halt, but last traded at $15.60. Australia's largest agricultural chemicals maker is expected to accept nearly a $3 billion takeover. The offer came late last week from Chinese chemical conglomerate China National Chemical also known as ChemChina and Blackstone Group. Nufarm and ChemChina held talks over the weekend with the Financial Review reporting they're close to resolving details. The newspaper also says the deal would include Nufarm's managing director and significant shareholder maintaining an ongoing role with the company if the buyout is successful. Nufarm's profit highlight over the past five years was in 2007.

To international markets, looking at the US markets on Friday, The Dow Jones Industrials finished up 27 points, the S&P500 up 1 point and the Nasdaq composite also higher, up 16 points.

European stocks were weaker. London's FTSE down 56; Paris fell 11, and Frankfurt was down 31.

To Asian markets, where Hong Kong's Hang Sang down 1025; Tokyo's Nikkei was down 353; and China's SSE Composite shed 136 points.

Back to the US, gold was up $14.80 to $808.50 US an ounce for the spot contract on Comex. Silver up 27 cents to $14.60, Copper was down 4 cents to $3.33.

And finally, Oil ending higher, up $2.44 to $95.93 US a barrel for December light crude in New York.

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