The market is up 46. The SFE Futures were up 12 this morning.

The Dow closed up 37. US markets were mixed in Monday trading, but did rally off earlier lows. The Nasdaq was down slightly, while the S&P 500 was flat. European markets were higher. The Australian dollar has hit a seven week low against the US dollar. It is now buying 105.11¢ but was down to as low as 104.74¢ overnight. Gold was down $11.70 an ounce to $1699.80. Utilities were best, up 1.1%. Energy and Material stocks underperformed, each down 0.6%. Financials were down early due weakness in regional banks. EU Ministers should approve the Greek bailout on Wednesday. We have an FOMC Meeting tonight.

Main points:

  • Macquarie Group (MQG) – Fitch Ratings has downgraded Macquarie’s credit rating by one notch to A- from A. The downgrade was due to the uncertain global economic environment and the group’s reliance on wholesale funding. It did not reflect any developments which were specific to the company.
  • Gunns’ (GNS) potential cornerstone investor Richard Chandler Corp has walked away from a $150m investment after the company’s biggest shareholders were reluctant to dilute their holdings by allowing Richard Chandler Corp to gain a 40% stake in the company. GNS shares are in suspension and will commence trading Monday pending negotiations of a capital raising. GNS closed at 16c and is in suspension.
  • Ausdrill (ASL) is looking to enter the underground contract mining sector and is considering acquiring private group GBF Mining and Industrial Services who has underground mining contracts in WA and NT.
  • Bandana Energy (BND) has advised its Springsure Creek coal project will be ready to export from the Wiggins Island port from late 2014.
  • Silver Lake Resources (SLR) has terminated a proposed merger with Phillips River Mining (PRH) after it was unable to complete due diligence satisfactorily. SLR had concerns about a metals offtake agreement that was in place.
  • Paladin Energy (PDN) up after a 3 year moratorium on uranium mining in Canada was lifted by indigenous landowners. Five of its deposits in Canada lie in this area and drilling is expected to begin in the September quarter focusing on the Michelin deposit.
  • GrainCorp (GNC) has advised that Canadian company Viterra has received expressions of interest from third-parties relating to a possible takeover. Viterra bought ABB Grain for $1.6bn in 2009. GNC could attract a significant premium above its Friday’s closing price of $8.10.
  • Ex Dividend today — BBG (3c), DWS (6.25c)

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