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5 things you need to know about the Australian sharemarket today

Welcome to Tuesday. Here are the five things I’m looking at today on the Australian sharemarket.

  1. The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has opened down 0.8%, as large cap oil and mining stocks reverse much of yesterday’s gains. Even the banks aren’t safe, with all four majors down in mid-morning trading.
  2. Medibank Private will list on the ASX shortly – with many analysts predicting a share price well north of the $2.00 retail investors paid for their shares. Broker IG Markets says traders were buying contracts for Medibank at $2.26 per share yesterday.In pre-trading, Commsec has Medibank Private Ltd (ASX: MPL) shares changing hands at around $2.30, suggesting retail investors, who hold 60% of the shares on offer will make a tidy ‘stag’ profit.
  3. Hedge funds have been told to expect an imminent takeover bid for resources giant Rio Tinto Limited (ASX: RIO) It seems Glencore the commodities trader and resources company has got its eyes on Australia’s largest iron ore miner.But even if a deal comes, it may take many months to get approval from the varied country regulators.
  4. Tweet of the Day

  5. Stock of the Day – brought to you by Sean O’Neill – BHP Billiton Limited (ASX: BHP). The world’s largest resources company is slashing costs and cutting capital expenditure. Will all this benefit shareholders? You can find out here.

 

While mining services, resources and oil companies such as Cardno, Rio, BHP and Origin Energy are being hit by heavy volatility, there's a 'hidden' set of resources stocks the market is simply overlooking. Discover the names and codes of these 3 surprising ASX plays now in The Motley Fool's brand-new FREE report. Simply click here for your free copy now.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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