Corporate Dealmaking Helps To Lift Stocks
British bank HSBC Holdings PLC said Monday it is in talks with financial group Old Mutual PLC to buy a controlling stake in South Africa's fourth largest bank Nedbank Group Ltd. in a deal worth as much as $6.8 billion.
Shares in Australia's Foster's Group Ltd ended 6.5 percent higher on news media reports that SABMiller PLC was preparing a 7 billion pound bid for Foster's beer business.
Even though investors are on the lookout for continued deals, overall sentiment in the markets remains fragile at best. The scale of the negative reaction to some worse than expected second-tier U.S. economic data last week provides clear evidence of where investors' main worries lie.
Foreign exchange markets are among the most affected by the worries over the U.S. economy.Even though the news out of the U.S. has been broadly disappointing over the last couple of weeks, the dollar does not seem to be suffering, particularly against the euro, because the main fear is that the slowdown in the U.S. will bring growth down everywhere else. A risk-averse trading environment also usually helps the dollar, due to its reputation as a safe-haven currency. By late afternoon London time, the euro was down 0.3 percent at $1.2656, way down on the four-month high of $1.333 it was trading at just over two weeks ago. Figures showing that the economic recovery in the eurozone was losing momentum did little to help the euro's fortunes. The monthly eurozone purchasing managers index â¿¿ a gauge of business activity â¿¿ dropped to 56.1 in August from 56.7 in July. The drop was bigger than anticipated in the markets and shows that growth, though relatively healthy, is slowing â¿¿ anything above 50 indicates expansion. One of the main points of interest in the markets is what happens in Australia after national elections on Saturday gave neither of the major political parties an outright majority in parliament.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV