After enduring a week of heavy selling, investors in oil and gas stocks will today be contemplating the ramifications of unconfirmed press reports that Santos has received a takeover offer. This will have the market considering what premium is warranted for the possibility of a takeover.

There is also likely to be spill over support for other oil and gas stocks. A bid for Santos would be a show of confidence in the sector and mean that existing investors taken out of Santos will be looking for alternatives.

The positive impact of a possible Santos bid will be an offsetting factor for the ongoing correction in oil and metals prices that will be a headwind for the ASX 200 this morning. The oil market is becoming nervous about a possible delay in a decision on extending the OPEC/Russian production agreement and was not helped by a build in US inventory last week

After yesterday’s disappointing wage data, today’s employment data will be a key focus for currency traders. After a run of very strong data in recent months, markets may be relatively forgiving of a modest downside miss in a volatile data series. However, another strong number could be supportive for the Aussie Dollar, franking the trend of recent month and confirming the picture of good business conditions on display in the NAB Business Conditions Index. 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.