The ASX 200 has built on its recent strength again today withy a solid 1.3% gain, to close at 5,680.1.
Here’s the scoreboard:
- S&P ASX 200: 5,684.3 +74.1 +1.30%
- All Ordinaries: 5,671.50 +68.3 +1.20%
- AUD/USD: 0.7711 -0.0016 -0.21%
It was always going to be a good day after futures rallied 32 points overnight, even before the news that the EU and Greece are very close to a deal.
IG’s Chief Market Strategist Chris Weston told Business Insider that:
We were always going to take some positive flow from the Greek negotiations and the overnight leads, but if you look at the short-term trend from early June it seems the bulls have been in control of the moves. We just needed the macro backdrop to improve.
Momentum is largely on the up in the ASX 200.
But Weston is a little skeptical on Greece, noting that there is still some wood to chop to get the actual deal over the line.
But traders in stock, bond and forex markets have acted as though the deal is a fait accompli – at least in Asia today.
Stocks in Asia, ex-Shanghai which continues to crash, are higher. The US dollar has got its mojo back and the Euro and Aussie dollar are under pressure. That might make no sense but there is a theory going around that investors will be buying EU stocks and selling Euro. Either way the Aussie is caught in teh backdraft today.
Likewise Aussie bonds which are up at 3.06% for the 10 year as the global bond rout has kicked off again.
Turning back to the ASX the index move masked some pretty decent moves in individual stocks. Soloman Lew’s Premier investments rose 5.52%, Kathmandu is up 5.6% and Liquified Natural Gas limited rose 4.84%.
On the negative side of the ledger Flight centre was hammered and is down 13.59% at the close, while Cover-more and Flexi group were down around 7%.
The top stories today:
1. Flight Centre was hammered at one point down more than 16%, it’s staged a late afternoon rally to close at $37.51. Investors didn’t like the big fall in Australian domestic growth.
2. The Commonwealth Bank’s Business Spending Index had its biggest increase in 3 years. Comm Bank says that means Joe Hockey’s small business stimulus is working.
3. The HSBC Flash PMI for China showed some improvement this month in the manufacturing sector. But it’s still in the contraction zone. That’s 4 months in a row.
4. The AUD’s drop hasn’t stopped Bali tourism. Because as the Boycott Bali movement was getting going, Australians went to Indonesia in record numbers. Maybe they’re just not booking with Flight Centre?
Business Insider Emails & Alerts
Site highlights each day to your inbox.