The market is in a bit of a twilight zone this morning as equities will struggle to find direction amid mixed offshore leads and as investors await the start of the reporting season in two weeks.
The futures market is pricing in a flat open for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) although gold stocks could come under pressure as the price of the precious metal fell 1% to around a five-year low of $US1,131.90 an ounce as fears of a Eurozone meltdown abated – for now at least.
That's not good news for our biggest listed gold producer Newcrest Mining Limited (ASX: NCM), and Regis Resources Limited (ASX: RRL) is likely to give back some of its stellar 26% gain to $1.45 on Friday after it posted its quarterly and promised to restart paying a dividend.
But it is non-gold miners that will steal the spotlight today. In the absence of any big macroeconomic developments, mining company news will dominate the minds of investors.
Steel maker Arrium Ltd (ASX: ARI) will be in focus not only because it is expected to deliver its quarterly production result today but also on an Australian Financial Review report that Pacific Equity Partners (PEP) is among several parties interested in buying Arrium's mining consumables business.
If true, this probably means PEP has moved on after being spurned by engineering services and consumables company Bradken Limited (ASX: BKN). That's bad news for shareholders.
Nickel miner Western Areas Ltd (ASX: WSA) is expected to announce its fourth quarter production numbers today; while mining giant BHP Billiton Limited (ASX: BHP) will also find itself in the spotlight as it remains in the running for Barrick's Zaldivr copper mine, although China Molybdenum is believed to be the most likely to buy the asset, according to Bloomberg.
There could be another happy day for Liquefied Natural Gas Ltd (ASX: LNG) after the US Federal Environmental Regulatory Commission (FERC) issued a favourable draft review of the company's Magnolia LNG project.
Integrated energy company Origin Energy Ltd (ASX: ORG) is contemplating selling half of its stake in New Zealand Contact Energy Limited (ASX: CEN) for around $4.50 a share, according to the AFR. Contact closed Friday at $NZ5.17 or $4.57, and UBS says the sale could cut Origin Energy's 2016 net debt to around 22%.
Gas utility DUET Group (ASX: DUE) will make a $1.9 billion bid for Energy Developments Limited (ASX: ENE), reports the AFR, and DUET has gone into a trading halt to undertake a capital raising for the transaction.
Medical facilities operator Sonic Healthcare Limited (ASX: SHL) released an earnings update saying that earnings before interest, tax, depreciation and amortisation (EBITDA) for 2014-15 will be up to 4% lower than previously forecast, but earnings in the follow year will be 20% higher.
The downgrade comes on the back of a disappointing update from its peer Primary Health Care Limited (ASX: PRY).
