CAPITAL MARKETS

Markets reach fresh highs, gold M&A continues

Stocks surge as risks abate

Staff reporter
 Northern Star Resources to pick up Newmont’s half of the Super Pit in Kalgoorlie

Northern Star Resources to pick up Newmont’s half of the Super Pit in Kalgoorlie

In the US, the S&P 500, Nasdaq and Dow Jones Industrial Average hit further record highs yesterday.

London's FTSE100 rose 2.25% and the pan-European STOXX 600 index reached a new closing high of 417.75.

Germany's DAX remains close to its record high, as does Australia's S&P/ASX200 and Canada's S&P/TSX Composite Index.

Key market futures are pointing to another day of gains.

Meanwhile M&A activity in the gold sector continues to heat up.

Northern Star Resources (ASX: NST) remains in a trading halt after announcing it will acquire Newmont's (NYSE: NEM) half of Kalgoorlie's Super Pit and associated assets for US$800 million.

It follows fellow ASX-listed Saracen Mineral Holdings acquiring Barrick Gold's half of the iconic mine for $750 million last month.  

In the Americas, Equinox Gold (TSX: EQX) and Leagold Mining (TSX: LMC) have announced a C$1.3 billion merger, with Equinox closing 0.25% higher and Leagold unchanged.
 
Meanwhile Centamin (TSX: CEE) closed down 1.8% in Toronto after agreeing to entertain the possibility of a merger with Endeavour Mining (TSX: EDV), which lost 4.7% yesterday.

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