The stock board at the Australian Securities Exchange (ASX) is seen in central Sydney November 6, 2008. Australian shares fell 3.8 percent on Thursday, driven down by miners such as BHP Billiton Ltd, after U.S. economic data stoked fears of a prolonged sl
The stock board at the Australian Securities Exchange (ASX) is seen in central Sydney November 6, 2008. Reuters/Daniel Munoz
  • Australian shares are off to a solid start, with the ASX 200 rising by 1 per cent as we approach lunch. All sectors are firmer with mining and energy companies standouts. Local stocks slumped by 1.3 per cent last week, adding to the weakness so far this month.
  • Global markets lost some ground on Friday with US central bank chief Janet Yellen confirming she expects rates to be lifted later this year if economic conditions improve as forecast. The market is split over the likelihood of a rate hike by September. Ongoing Greek debt concerns continue, with its government due to pay monthly salaries and pensions by May 29 and owing €300m to the IMF in early June.
  • Skilled Group (SKE) is up 11 per cent to $1.38 after the workforce provider has entered merger talks with rival, Programmed Group (PRG). SKE rejected a $1.38/share offer from the slightly larger company in January this year.
  • Sirius Resources (SIR) is up 20 per cent after the exploration company received a $1.8bn takeover offer from mining group, Independence (IGO). IGO shares are down 7.6 per cent today.
  • Oroton Group (ORL) is adding to Friday’s 13 per cent slump, down 5.4 per cent after cutting its profit expectations for the second half of the year. Heavy discounting has been a negative for the upmarket retailer’s brand prestige.
  • Volume is a little light, with 828.3m shares traded worth just $1.5bn. 457 stocks are up, 325 down and 317 flat.
  • Ahead of the US Memorial Day holiday tonight (plus holidays in London, Hong Kong and South Korea) global markets chose to focus on a stronger-than-expected 0.3 per cent rise in the US core inflation rate, the largest monthly increase in over two years. The release was compounded by Fed Chair Janet Yellen’s comments implying a rise in the Fed funds rate is likely this year.
  • The Australian dollar fell 1 per cent on Friday night despite a 3.8 per cent rise in iron ore and remains sidelined around 0.78 US cents today in the absence of local economic data. Elsewhere, the AUD/EUR cross rate is up 1.4 per cent to 0.7120 as EUR weakened after Greece warned it may default on debt repayment loans in June.
Steven Daghlian - Market Analyst (Author)
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