The Australian stock market began the week in positive territory, following a strong lead from Wall Street on Friday.

However, both major indices went backwards in morning trade, dragged down by financial stocks. At midday the S&P/ASX200 index was down 18 points, while the All Ordinaries lost 15.

US stocks made significant gains on Friday, as a modest rise in the core consumer price index in May reduced worries over a possible near-term interest rate hike.

The Dow Jones Industrial Average ended the week's last trading session up 165 points, while the Nasdaq Composite added 50.

In Asian trading today, Japan’s Nikkei was up 205 points at noon, while Hong Kong’s Hang Seng gained 221.

Meanwhile, in ASX news Sydney based Roc Oil today announced a $612 million off-market takeover offer for fellow mid-tier oil and gas player Anzon Australia. The cash and shares offer represents a 34 per cent premium to Anzon’s average share price over the past month.

Concurrently Roc said that it is to merge with AIM listed Anzon Energy, which is Anzon Australia’s major shareholder, in a deal that has received the unanimous backing of the boards of both companies.

In other news, investment fund Macquarie Capital Alliance Group this morning announced an $836 million privatisation plan following a disappointing performance by the stock since its 2005 listing.

The fund said the $3.40 per share privatisation offer had come from a consortium of investors acting through the bidding vehicle Macquarie Advanced Investment Group. MCAG said its directors would recommend the offer. Shares in the group rocketed more than 50 per cent this morning on the news.

Finally, homewares group McPherson’s today reconfirmed its full year guidance following its record first half performance.

McPherson’s said it expects a 31 per cent rise in underlying pre-tax profit for the year, to $38 million. The company also said that it intends to buy back up to ten per cent of its shares over the next 12 months, while it continues to assess acquisition opportunities. Shares in McPherson’s rose more than ten per cent on the news.

In individual share price movements on the ASX this morning resource stocks were generally positive at noon. BHP Billiton was up 65 cents, Fortescue Metals added 33, Rio Tinto put on $1.32, while Woodside Petroleum fell $2.38 on lower oil prices.

Financial stocks were the main drag on the market at midday. ANZ fell 20 cents, Commonwealth Bank dropped 24, National Australia Bank lost 69 cents, and Westpac shed 23.

Other blue chips were mixed. AMP was down eight cents at noon, News Corp added 19, Telstra gained two cents, while Woolworths fell four.