Markets seem to be exactly where they were last Friday as far as Greece is concerned. The world is waiting on another set of “last ditch” meetings with a general expectation that crisis will be averted but concerned that there is some room for doubt. The bottom line as far as today’s trading is concerned may be to leave both buyers and sellers cautious.
News that US personal spending in May showed the largest monthly gain since August 2009 suggests that US consumers are starting to re assert themselves as the engine room of world growth. A continuation of this trend brings a September rate hike by the Fed into focus.
US consumer strength and the potential for a relatively early start to Fed monetary tightening might create some short term nervousness about Australian bank shares which have enjoyed a significant recovery over the past three weeks.
Energy stocks may also be a negative in today’s market following a weak lead from the energy sector in the US as traders focus on the possibility of a significant increase in world supply if trade sanctions over Iran are lifted.
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