The deluge of economic data on tap this week and mixed offshore leads are likely to force investors to the sidelines this morning.
The futures market is pointing to a flat open for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) as the big 2%-plus gains by European stocks were tempered by a 0.1% dip in the US S&P 500 Index that was dragged into the red by a sharp sell-off in biotech stocks.
Investors are biding time before the all-important Chinese industrial production figures and US jobs data due on Thursday and Friday, respectively, which will likely set the tone for the market for the weeks ahead.
But today's big news is the surprising $3 billion-plus merger of telecommunications services groups M2 Group Ltd (ASX: MTU) and Vocus Communications Limited (ASX: VOC).
While mergers in the sector amid record low interest rates are hardly surprising, the deal has caught me off guard because the ink has hardly dried on Vocus' acquisition of Amcom Telecommunications.
M2 shareholders will get 1.625 Vocus shares for each M2 share they own and the merger is backed by the boards of both companies. Stay tuned as we will bring you more coverage and analysis on the deal later today.
Investors will also be watching the chemical sector closely after Bloomberg reported that Germany-based agricultural chemical and salt company K+S is planning on making acquisitions to get a foothold in our side of the world. There could be implications for the likes of Incitec Pivot Ltd (ASX: IPL) and Orica Ltd (ASX: ORI).
In other acquisition news, equipment leasing and financing solutions provider FlexiGroup Limited (ASX: FXL) is set to buy Fisher & Paykel's financing business for around $NZ300 million ($272.7 million) and will undertake a capital raising to help fund the deal, according to the Australian Financial Review.
Meanwhile, resource stocks are likely to post a mixed performance this morning given how commodity prices finished on Friday night.
Energy stocks like Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) could recover some of Friday's losses as the West Texas Intermediate oil price jumped 1.8% to $US45.70 a barrel, while iron ore producers like Fortescue Metals Group Limited (ASX: FMG) will be cheering after the price of the steel making ingredient recorded its best one-day gain in a month of 3% to $US56.98 a tonne.
On the flipside, gold fell 0.7% from a one-month high to $US1,145.60 an ounce and copper suffered its biggest weekly loss of 0.8% to $US2.2835 a pound.
However, investors might have to take the price actions with a grain of salt as thin trade due to the Mid-Autumn festival holiday in China could be distorting the price of commodities.
Finally, today is the last day you can buy salary packaging companies McMillan Shakespeare Limited (ASX: MMS) and SG Fleet Group Ltd (ASX: SGF) for their dividends as both will trade ex-div tomorrow.
McMillan Shakespeare will pay a fully franked 27 cents a share dividend, while SG Fleet will distribute a fully franked 6.117 cents a share payout.
