The market is up 19. The SFE Futures suggested a 3 point rise this morning. Australia’s unemployment rate has come in better-than-expected, up to 5.7% in May compared to 5.5% in April. Total employment fell by 1700 to 10.793m; economists were expecting job losses of 30,000.

The Dow closed down 24 overnight – Early rally killed off by a weak bond market. Dow up 72 at best down 123 at worst. Oil price is up 1.9%, Gold was unchanged and a US$19bn 10 year note auction wasn’t well received causing bond market to fall and yield to pop over 4.0% briefly on 10 year bonds.

Minmetals ups its offer for Oz Minerals assets by $180m – Oz Minerals (OZL) holds its AGM today, and shareholders will vote on Minmetals new and improved $US1.39bn offer that will result in the banks getting paid $1.2bn owed this month.

  • Street Talk were on the money this morning suggesting mining services company group GRD Ltd (GRD) were about to receive a takeover offer. UK based AMEC have offered $105.8m (55c a share) – the proposal remains conditional and non-binding.
  • Fortescue Metals over 400c (has hit 427c – up 15.2% so far) – very strong momentum. It was up 15% yesterday as well – they were giving presentations in London.
  • Kagara re-lists – Kagara has come out of its trading halt this morning and up 7% to 95c on its theoretical ex-rights price – The Guangdong Foreign Trade Group, a Chinese government body, is looking to take a 19.9% stake.
  • Western Areas (WSA) up 13.6% yesterday and up again today on the back of the capital raising by Kagara (KZL) – they have a JV on the Lounge Lizard project with KZL.
  • Boart Longyear (BLY) has had a speeding ticket after the recent rally in huge volume. They provide no reason. In fact they reiterate their recent profit warning.
  • Atlas Iron (AGO) is still in a trading halt (suspended actually) as they consider a capital raising and Merrill Lynch talk about the Chinese buying the company.
  • Suncorp-Metway (SUN) raised $2.5bn in 18 month global bonds guaranteed by the Australian government.
  • Babcock & Brown Japan Trust (BJT) is reviewing its distribution guidance following federal court decision.
  • Industrea (IDL) wins a $2.5m China contract.
  • Telstra (TLS) has appointed Paul Geason as Group Managing Director of Telstra Wholesale division.
  • Atlas Iron’s (AGO) shares are suspended pending a capital raising announcement.
  • Australia World Exploration (AWE) has provided a drilling update for Vietnam.

In other news…

  • Arrow Energy (AOE) doing well after Royal Dutch Shell says it will open to consolidation with rival LNG projects in QLD but will also go ahead with plans for a terminal on its own.
  • Citi believe “it is far from a certainty” that BHP and RIO will achieve EU approval for their Pilbara iron ore JV due to anti trust issues.
  • UBS Warburg says BHP’s and RIO’s indication to move away from contract mining could put Leighton Holdings (LEI) $750m revenue stream a year from the Pilbara region at risk.
  • Credit Suisse lifts Mirvac (MGR) to Neutral from Underperform and target price to 126c from 111c.
  • GSJB Were suggests Goodman Group (GMG) could be next in line to raise capital in the REIT space. They say a 1-for-1 offer at 40c would generate $1.27bn.

The Dow Futures suggest a 20 point rise on Wall Street tonight.

MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.

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