After a rally in the morning, the ASX200 has pulled back slightly to 5695 points, a 1.17 per cent rise for the day.
The index is being led by the mining and financial services sector, with BHP Group up 3.12 per cent and CBA up 1.08 per cent.
The biggest loser from the day so far is Healius, dropping 5.45 per cent after it rejected a takeover bid from Chinese investor Jangho.
Emeco Holdings is up 10.82 per cent over the day and Syrah resources is up 8.14 per cent.
The decision by the board of health care company Healius to reject the $2 billion takeover proposal from Chinese conglomerate Jangho Hong Kong Holdings could backfire badly on the company.
Shareholders in Healius could find themselves nursing heavy losses if Jangho were to decide to pack up its kitbag and go home. The hostile bidder could decide to give up on an investment that has gone nowhere for a couple of years.
If Jangho decides to sell its 15.9 per cent shareholding in Healius that would probably require a block trade that could hang over the market for some time.
Chanticleer with the story here.
This chart shows that in the last 25 years, the Australian share market has fallen only five times over a calendar year inclusive of dividends, including 2018.
The chart was taken from a note released today by Absolute Equity Performance Fund.
The stakes in the two days of face-to-face trade negotiations in Beijing between the US and China that start on Monday are substantial, and not just for the US and China.
While a failure to agree when US deputy trade representative Jeff Gerrish meets his Chinese counterparts probably wouldn't result in a "mutually assured destruction" outcome for the world's two largest economies it would inevitably produce mutually assured damage with, because they are the world's two largest and most important economies, significant spill-over effects for the rest of the world.
Donald Trump has correctly identified the fact that China is vulnerable in these negotiations, with its economy weakening.
Stephen Bartholomeusz's opinion piece here.
The Australian Securities Exchange is pursuing its hard line against Chinese firms, expelling a number from the exchange and proposing to impose new rules to punish dodgy listed companies and rule breakers.
China Dairy, Traditional Therapy Clinics, Winha Commerce, Wolf Petroleum, Ding Sheng Xin Finance and Premiere Eastern Energy were all delisted by the ASX in 2018 and there could be several more expelled under the proposed changes. ASX has also been increasing scrutiny of companies proposing to list on the local market.
The reasons companies are delisted include failing to lodge accounts, corporate governance problems, failure to respond to ASX queries, breaches of listing rules and long-term suspension of shares.
William McInnes with the story here.
Trying to predict markets is a perilous task at the best of times. That certainly appears the case now, given the hangover investment funds are nursing after the pain inflicted in 2018 across bonds and equities, the twin pillars of portfolios.
At this stage of an ageing economic cycle, investors have good reason for concern as they try to work out whether the rout in equity and credit markets represents a final correction in this cycle or the start of lengthy decline. We have not begun a new year in such a glum mood since the start of 2009 and before that, 1999.
Two important developments in US markets illustrate the dilemma facing investors. Wall Street's bruising run means the earnings multiple for the S&P 500 has fallen sharply from its peak in late 2017, typically a harbinger of strong returns for the coming year. Any positive surprises in economic data and corporate earnings will buoy sentiment alongside lower oil prices.
Michael Mackenzie's opinion piece is here.
The rally in the Australian share market has slowed, with the ASX continuing to hover around the 5,700 level.
The biggest winner so far on Monday has been Emeco Holdings, rising 9.76 per cent.
Syrah Resources has risen 9.45 per cent.
Gold miner St Barbara Limited has experienced the biggest fall of 4.01 per cent.
The ASX has continued to rise this morning, up 1.71 per cent today to 5,714 points.
The index has risen above 5,700 points, for the first time since early December last year.
Below is a graph of how the index has performed over the last month.
The private wealth division of Macquarie Group has taken a hit after more than 20 advisers left amid concerns about the group's narrow focus on wealthy clients and its new fee and remuneration model.
The Australian Financial Review can reveal more than 20 advisers, many of whom were key revenue writers, jumped ship to rival firms across Sydney, Melbourne, Adelaide, Perth and Canberra on the Friday before Christmas.
Sources said the key reason for the departures was Macquarie's shift in gear last year to merge its private bank and private wealth businesses and focus exclusively on wealthier clients after the Hayne royal commission revealed industry-wide troubles in the retail advice sector.
Sarah Thompson and Misa Han have the full story here.
The share price for health group Healius has fallen 4.55 per cent on Monday morning, after it rejected a takeover bid from Chinese investor Jangho.
The stock rose when the takeover news broke late last week, but with the announcement of the rejection, the price has since fallen.
Patrick Hatch has the full story on the rejection of the takeover here.