insto - Australian financial markets

The deep freeze that descended on financial markets across the most advanced economies one year ago did not spare the M&A world. However there are definite signs of life re-appearing, reports Catherine Raisig*

For a while there it really did look as if mergers and acquisitions teams worldwide had been dealt a lethal blow. With the collapse of US financial services provider Lehman Brothers just over a year ago, M&A activity slumped the world over and the involvement of private equity players in deal activity became virtually non-existent.

Ben Potter, research analyst for IG Markets saw the week as follows:

Asian markets extended the week’s gains as better-than-expected corporate reports from the US and a rally in commodities lifted confidence globally. The MSCI Asia Pacific index is headed for its fifth monthly gain.

The typical Friday profit taking, especially after such a strong week was replaced by end-of-month buying. The fund manager’s were definitely window dressing today, with Bluescope Steel a prime example.

With the disappointment of last Thursday’s US employment data still lingering, it was an uneasy start to the week for credit markets.