At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is edging lower. The benchmark index is currently down almost 0.1% to 6,817.9 points.
Here's what is happening on the market today:
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Treasury Wine hit by Chinese tariffs
The Treasury Wine Estates Ltd (ASX: TWE) share price is trading lower today after China's Ministry of Commerce (MOFCOM) confirmed that it would be placing tariffs on Australian wine for five years. MOFCOM made the move following the final determination in its anti-dumping and countervailing investigations into certain Australian wine exports into China. A combined anti-dumping and countervailing duty rate of 175.6% will be applied to Treasury Wine's Australian country of origin wine in containers of two litres or less imported into China.
Computershare raises $500 million
The Computershare Ltd (ASX: CPU) share price has returned from its trading halt and is pushing higher after completing the institutional component of its entitlement offer. The share registry company raised $500 million from institutional investors and will now seek to raise a further ~$335 million from retail shareholders. These proceeds are being used to partially fund its acquisition of Wells Fargo Corporate Trust Services (CTS) for US$750 million (~A$982 million).
REA Group acquisition
The REA Group Limited (ASX: REA) share price is tumbling lower after announcing plans to acquire Mortgage Choice Limited (ASX: MOC) for $244 million or $1.94 per share. REA Group's CEO, Owen Wilson, commented: The acquisition of Mortgage Choice represents an exciting opportunity for REA to create a leading broking business. It builds on our success to date, accelerating our financial services strategy while leveraging our existing strengths and capabilities." The Mortgage Choice board has voted unanimously in favour of the takeover.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Monday has been the Iluka Resources Limited (ASX: ILU) share price with a 6.5% gain on no news. Going the other way, the worst performer has been the Netwealth Group Ltd (ASX: NWL) share price with a 4.5% decline. Investors have been selling the wealth management platform provider's shares since last week. This follows news that its deposit arrangement has been terminated.
