Morning market movers: 12 stocks to watch

Our market is expected to build on yesterday's strong gains with Asciano Ltd (ASX:AIO) and Scentre Group Ltd (ASX:SCG) in the deal-making spotlight, while Pacific Brands Limited (ASX:PBG) issues a rare profit upgrade.

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Our market is poised to take a small step forward this morning after a big rally in European and US shares is offset by weakening commodity prices.

The futures market is pricing in a 0.2% advance for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning although that is not a bad outcome given that our market jumped 1% yesterday.

But resource stocks like BHP Billiton Limited (ASX: BHP) and Woodside Petroleum (ASX: WPL) are likely to weigh as the West Texas Intermediate (WTI) crude price tumbled 4.2% to $US56.96 a barrel and iron ore fell for the fifth straight day as it weakened 0.3% to $US59.20 a tonne.

The threat of further declines in iron ore must be weighing on Atlas Iron Limited (ASX: AGO) but it hasn't stopped it from restarting mining at Mount Webber with management expecting processing of the ore to begin in the middle of this month.

Investors won't find solace among gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) either, after the price of the precious metal lost 0.2% to $US1,169 an ounce.

This leaves the big banks to do the heavy lifting today with the likes of Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ) enjoying support from bargain hunters recently. This will probably continue for a while yet.

But I think the broader financial sector will also do reasonably well thanks to offshore corporate interest. US wealth manager Janus Capital has bought a 51% stake in privately held Kapstream Capital and this follows Warren Buffett's investment in Insurance Australia Group Ltd (ASX: IAG).

There's plenty of corporate action outside of finance too. Private equity group Blackstone is mulling a $630 million offer to buy three Westfield malls owned by Scentre Group Ltd (ASX: SCG), according to the Australian Financial Review.

Port operator Asciano Ltd (ASX: AIO) will stay in the spotlight after yesterday's takeover bid from Brookfield Infrastructure Partners on reports that the bidder may be forced to up its $9 billion offer.

A number of companies have also issued guidance ahead of the August full year reporting season. Underwear and linen company Pacific Brands Limited (ASX: PBG) has upgraded its earnings forecast, sandalwood plantation owner TFS Corporation Limited (ASX: TFS) has reaffirmed guidance for 2014-15 and childcare centre operator Affinity Education Group Ltd (ASX: AFJ) said underlying full year earnings before interest, tax, depreciation and amortisation profit will range between $27 million and $32 million.

Stay with the Motley Fool as we will bring you more detailed updates later in the day.

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited and Woodside Petroleum Ltd.. Follow me on Twitter - https://twitter.com/brenlau The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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