Australian stocks rise after Aristocrat Leisure offers $ 4 billion to world’s largest online betting software company
The Australian stock market was boosted by a takeover frenzy with deals including the $ 3.9 billion buyout by poker machine maker Aristocrat Leisure from the world’s largest provider of gaming software and software. online sports betting.
- The All Ordinaries index fell 0.1 pc, to 7,668, while the ASX 200 index fell 0.06 pc, to 7,360, with more lower than upper sectors
- In the United States, the Dow Jones index rose 1.1% to 35,295, the S&P 500 0.75% to 4,471 and the Nasdaq Composite rose 0.5% to 14,897
- Meanwhile, the Australian dollar rose to around 74.29 US cents
The All Ordinaries Index broke its daily highs but still rose a fifth of a percent to 7,690.
The ASX 200 Index came in at 0.26% at 7,381, with gains led by stocks in education, miners, banks and oil and gas companies.
The main losses were in healthcare, real estate, technology, consumer staples and industrial stocks.
Oil prices hit a three-year high on forecasts of tight supply that boosted energy companies.
Brent crude rose 1% to US $ 85.68 per barrel, while spot gold slightly exceeded its highs and was at US $ 1,767.44 per ounce at 5 p.m. AEDT.
The national average weekly gasoline price rose 6.9 cents to a 13-year high of 160.7 cents per liter.
Nickel Mines (+5.1 pc) was the best performer on the ASX 200, while WiseTech Global (-2.9 pc) was the worst.
Meanwhile, the Australian dollar fell 0.36 percent to 73.95 US cents.
Santos gets the green light for Narrabri
Santos share (1.4 pc) rose due to the rise in oil prices. He welcomed the rejection of an appeal against his Narrabri gas project in northern New South Wales.
The oil and gas producer said Santos now looks forward to continuing his work in the regional NSW.
Managing Director and CEO Kevin Gallagher said that while the legal process pushed the project deadlines back 12 months, Santos is committed to bringing in the much-needed domestic gas the state needs.
Senex Energy jumped nearly 15% after saying South Korean steel giant POSCO wanted to buy it back for $ 815 million.
Travel stocks rose as News South Wales hit its 80% double-vaccination target this weekend.
$ 4 billion slot machine deal
Poker machine maker Aristocrat Leisure has told the market it will buy a UK online gaming company for 2.1 billion pounds ($ 3.9 billion), allowing it to expand into new areas of growth. , including real money games (RMG).
Shareholders of London-listed Playtech are offered 6 pounds 80 pence ($ 12.61) per share, a premium of 58.4% over the company’s closing price on Friday.
Aristocrat said that Playtech’s board of directors and its largest shareholder, with a stake of around 21%, backed its offer.
The Australian company said it would fund the deal with a fundraising of $ 1.3 billion, as well as new debt and existing liquidity.
Aristocrat shares were stopped at $ 45.79 for capital raising.
Chinese economy is shrinking
The Chinese economy grew at an annual rate of 4.9% in the September quarter, compared to 7.9% for the year to June.
In the quarter, the economy grew only a fifth of a percent, down from the 1.2 percent growth in the June quarter.
Retail sales, industrial production and capital investment were all strong, with private investment increasing nearly 10 percent on an annual basis.
China’s unemployment rate stood at 4.9% in the September quarter.
CommSec said the data was generally below expectations, so the door remained open for more monetary stimulus.
Inflation leaps through the ditch
New Zealand’s annual inflation rate hit its highest levels in more than a decade due to soaring house prices and housing costs, rising vegetable prices, high costs of transportation and fuel prices.
Consumer prices in the country rose 2.2 percent in the September quarter.
Compared to a year ago, New Zealand consumer prices jumped 4.9%.
This has pushed up the yield on Australian government bonds, suggesting that investors expect Reserve Bank interest rates to rise sooner rather than later.
US stocks climb on Goldman earnings
Wall Street gained on Friday and the Dow Jones Index recorded its biggest weekly percentage gain since June, as Goldman Sachs closed a week of strong quarterly earnings for the big banks.
Goldman Sachs shares jumped 3.8% and gave the Dow its biggest boost, as a record wave of trading activity drove the bank’s quarterly profits up.
Its earnings report follows strong results from Bank of America and others last week. Banks were among the S&P 500’s biggest assets, as its banking index climbed more than 2%.
The Dow Jones Industrial Average rose 382 points, or 1.1%, to 35,295. The S&P 500 gained 33 points, or 0.75%, to 4,471. And the Nasdaq Composite added 74 points, or 0 , 5%, at 14,897.
Meanwhile, the U.S. Department of Commerce reported a surprise 0.7% rise in retail sales in September, though investors fear supply constraints could disrupt the upcoming holiday shopping season.
A preliminary reading of consumer sentiment in October was slightly below expectations.