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July 17, 2018
Canada’s Lundin Mining Corp said on Monday it plans to make an offer to buy base metals company Nevsun Resources Ltd for about C$1.4 billion ($1.07 billion), its second proposal in three months. Lundin offered C$4.75 per share, a premium of 12.8 percent to Nevsun’s closing price of C$4.21 on Monday. Cash-rich Lundin has been eyeing Nevsun’s large high-grade Timok copper project in Serbia and its Bisha copper and zinc mine in Eritrea, in a partnership with Euro Sun Mining Inc. Together the two companies proposed to buy Nevsun outright in May for C$1.5 billion, but were rejected by the company saying the price was too low and the deal had a “problematic structure”.
Technology stocks are headed for a rough session on Tuesday after shares of Netflix, one of the momentum leaders of this bull market, tanked after earnings in early trading. Amazon shares fell as well. The Invesco QQQ Trust exchange-traded fund, which tracks the Nasdaq 100 index, dropped 0.9 percent in premarket trading Tuesday. The Nasdaq 100 is made up of the 100 largest stocks in the Nasdaq Composite. Netflix plunged more than 11 percent in premarket trading Tuesday after reporting weaker-than-expected subscriber growth. The streaming giant said domestic subscribers grew by 670,000 in the previous quarter, while international additions rose by 4.5 million. Analysts polled by Street Account expected domestic gains of 1.23 million and 5.11 million new international subscribers. The other FANG members also fell in premarket trading. Shares of Facebook were down 1 percent. Amazon shares also fell 1 percent amid glitches during the start of the company's annual Prime Day. Google-parent Alphabet fell 0.7 percent.
World stocks recovered some ground on Tuesday as oil prices stabilised, while the dollar edged lower and most other markets were subdued before Federal Reserve Chair Jerome Powell testifies to the U.S. Congress. MSCI’s world equity index, which tracks shares in 47 countries, was broadly unchanged, with energy companies in Europe and Asia recovering ground from early losses caused by the previous day’s turbulence in commodity markets. Brent crude initially fell for a second day after a 4 percent slump on Monday, as Libyan ports reopened and traders eyed potential supply increases by Russia and other producers, but they recovered to trade up 0.5 percent. Europe’s Stoxx 600 was up 0.1 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4 percent, snapping two days of gains amid concern over growth in China. In Europe, technology stocks fell 0.4 percent after U.S. tech giant Netflix missed estimates for growth in subscribers.
Japan’s Nikkei share average rose to a one-month high on Tuesday as a weak yen lifted exporters, offsetting weakness in machinery stocks after data showed China’s growth momentum is cooling. Japanese markets reopened after a three-day weekend due to a national holiday on Monday, with the Nikkei ending 0.4 percent higher to 22,697.36, the highest closing level since June 15. The broader Topix advanced 0.9 percent to 1,745.05. The dollar strengthened 0.1 percent against the yen to 112.4 yen, ticking up towards a six-month high of 112.80 yen on July 13. The weaker yen boosted automaker shares. Toyota Motor Corp advanced 1.3 percent and Nissan Motor Co added 0.8 percent.