Morning market movers: 10 stocks to watch

Expect more gains on our market this morning on strong offshore leads, but it's resource stocks that are likely to lead the charge with Oil Search Limited (ASX:OSH) and AWE Limited (ASX:AWE) among stocks in the spotlight.

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Our market is expected to extend yesterday's solid gains as a last hour rally on the Shanghai Stock Exchange last evening sparked a big rise on Wall Street.

A jump in most commodity prices is also contributing to the positive sentiment with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) tipped to advance 0.6% this morning after posting a 1.7% increase yesterday.

The late buying spree in Shanghai is further evidence that the Chinese government is directly intervening to prop up its share market and that gave US investors returning from the Labor Day long weekend the excuse to bid up the S&P 500 Index and Dow Jones Industrial Average by around 2.5% each overnight.

It's resource stocks that will remain in the spotlight today. Copper was the standout with the red metal surging 5.1% to $2.4295 a pound even in the face of weaker Chinese trade data.

Swiss mining giant Glencore's decision to cut production is propping up the copper price, which added 1.3% the day before.

Shareholders in local copper miner OZ Minerals Limited (ASX: OZL) will be smiling, especially after Goldman Sachs upgraded the stock to "neutral" from "sell".

Iron ore producers like Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX:FMG) should also enjoy support today as the iron ore price jumped 1% to a more than two-month high of $US57.42 a tonne.

It will be hard not to look at the energy sector too following Woodside Petroleum Limited's (ASX: WPL) $12 billion bid for Oil Search Limited (ASX: OSH). As I wrote yesterday, the offer is too low and the market is expecting Oil Search to reject the advance.

There's also a chance of a bidding war emerging for Oil Search and corporate interest is likely to fuel further rises in the sector with AWE Limited (ASX: AWE) enjoying a second tailwind after UBS upgraded the stock to "buy" from "neutral" following the stock's 60% decline over the past year.

Over in financials, UK-fund manager Henderson Group plc (ASX: HGG) announced that it will start its £25 million ($54.8 million) on-market share buyback in the week commencing 14 September.

Speculation that Spanish lender Sabadell will make a bid for National Australia Bank Ltd.'s (ASX: NAB) UK bank Clydesdale Bank will kick up a notch after Standard's & Poor said bank consolidation outside the top six lenders is inevitable. NAB is planning on listing Clydesdale as a separate entity.

In other news, animal feed supplier Ridley Corporation Ltd (ASX: RIC) said it will build a new feedmill in the outskirts of Geelong for around $20 million, while base metal miner Independence Group NL (ASX: IGO) is streamlining its Long nickel mine and will cut 28 jobs in response to weak commodity prices.

Finally, today is also the last day to buy shipbuilder Austal Limited (ASX: ASB), auto dealer Automotive Group Holdings Ltd (ASX: AHG) and hospital operator Healthscope Ltd (ASX: HSO) for their dividend as the stocks will trade ex-div tomorrow.

Motley Fool contributor Brendon Lau owns shares of Independence Group NL, National Australia Bank Limited, Oil Search Limited, Rio Tinto Ltd., and Woodside Petroleum Ltd.. Follow me on Twitter - https://twitter.com/brenlau Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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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