Sydney, June 4, 2009 (ABN Newswire) - US stocks tumbled overnight as energy stocks were lower on the falling oil prices. Oil prices slipped more than 3 per cent after a surprise build-up in inventories. Mixed signals on jobs and service-sector activity also weighed on sentiment concerning domestic demand.
The Australian market rose through the 4,000 level on Wednesday, led by property stocks as data showed the economy had avoided a recession. The benchmark S&P/ASX200 surged 61.9 points, or 1.56 per cent, to 4,017.2, while the broader All Ordinaries was 61.2 points, or 1.55 per cent higher, at 4,009.3.
Key Economic Facts and Figures
Australia's GDP rose 0.4% in the first quarter 2009 from the previous quarter and was up the same percentage from the previous year, the Australian Bureau of Statistics said Wednesday. Australia's terms of trade fell 7.8% in seasonally adjusted terms in the March quarter following a 2.9% decrease in the December quarter.
The Australian Bureau of Statistics on Thursday releases international trade in goods and services data for April.
M&A News
OZ Minerals (ASX:OZL) said it had all the approvals it needed to proceed with China's Minmetals transaction. Analysts expect OZ Minerals' deal to sell mining assets worth A$1.5 billion to Minmetals would provide a better return for shareholders than an alternative proposal for a recapitalisation.
Paddy Power Plc (ISE:PWL) said its Sportsbet Pty Ltd. unit agreed to buy the shares it doesn't already own in Australian online bookmaker International All Sports Ltd (ASX:IAS). Sportsbet, which holds about 20 percent in IAS, would pay 60 cents a share for IAS under the proposed scheme of arrangement. The takeover deal is subject to regulatory and IAS shareholder approval.
Important Corporate News
Rio Tinto (ASX:RIO) is exploring for minerals in Congo for the first time, signalling the increasing importance of seemingly risky, developing countries for future discoveries.
Santos (ASX:STO) is prepared to reduce its equity stake in the Gladstone liquefied natural gas project in Queensland to 51 percent as it looks to secure an offtake partner.
Rubicon Resources Limited (ASX:RBR) has signed a letter agreement with Quadrio Resources, a wholly owned subsidiary of Dominion Mining Limited (ASX:DOM), to enter into a joint venture agreement on the Yalla Burra sub-project tenements at Rubicon's Yindarlgooda Project.
Galaxy Resources Limited (ASX:GXY) has secured a key supply of soda ash for its proposed lithium carbonate plant in Jiangsu Province, China. The Company has signed a Letter of Intent (LOI) with the Jiangsu Huachang Chemical Co. Limited (SHE:002274) to supply 40,000 tonnes of soda ash (Na2CO3) per annum for 15 years.
Mirvac Group (ASX:MGR) requested a trading halt today as the company is seeking to raise up to A$1.1 billion in equity.
Bauxite Resources Limited (ASX:BAU)(PINK:BXRDF) has taken another key step towards the development of its 14,400km(2) Darling Range Bauxite Project after receiving formal approval from the Foreign Investment Review Board (FIRB) for a A$9.85m share placement to Chinese Government agency, the Shandong Provincial Bureau of Geology and Mineral Resources ("SDGM").
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