Greece tosses toys from the pram - again
In an entirely predictable manoeuvre, the developed world’s oldest adolescent has once again failed to solve its problems at the eleventh hour. Once again, according to the Greek PM, the fault lies with everyone but Greece itself. Amid hints of recriminations and dark conspiracies optimism evaporated. Markets in Europe started the sell off, but US markets took it further, suggesting disappointment at this latest baulk at the gate is not yet fully priced in share markets.
Futures are pointing to only modest falls at Asian Pacific openings. However, with little data due the selling may accelerate across the region unless there is a positive surprise from the continent. Locally, a softer AUD may add some support, but technical selling could kick in, in recognition of the failures at resistance. These failures at both the index and single stock level are likely to reinforce each other.
Of particular note in this sentiment swing are recent earnings revisions. Seek, Flight Centre and MacMahon Holdings have all warned this week, and may face renewed pressure in today’s weakened environment. Adding to potential volumes and volatility is the looming financial year end just four trading days away.
For further comment from Michael McCarthy at CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
Greece's financial situation is causing concern because it has once again failed to resolve its economic issues, leading to market uncertainty and a sell-off in European and US markets. This uncertainty can affect investor confidence and market stability.
Global markets are reacting negatively to Greece's financial troubles. European markets initiated a sell-off, which was further exacerbated by US markets. This indicates that the disappointment from Greece's situation is not yet fully reflected in share prices.
Greece's financial issues could lead to modest falls in Asian Pacific markets. However, if there are no positive surprises from Europe, the selling may accelerate across the region, affecting investor sentiment and market performance.
The Australian dollar may experience some support due to Greece's economic situation. However, technical selling could occur as investors recognize failures at resistance levels, potentially impacting the currency's stability.
Companies like Seek, Flight Centre, and MacMahon Holdings are facing pressure due to recent earnings revisions and the weakened market environment. These companies may experience increased volatility and trading volumes as a result.
The looming financial year-end, just four trading days away, is contributing to potential increases in trading volumes and market volatility. Investors may be adjusting their portfolios in response to the current market conditions and financial deadlines.
Investors can stay informed about market changes related to Greece by following updates from financial analysts and market commentators, such as Michael McCarthy at CMC Markets. Staying updated on market news and expert insights can help investors make informed decisions.
Investors should consider diversifying their portfolios, staying informed about market developments, and consulting with financial advisors to navigate market uncertainty caused by Greece. Understanding the potential risks and opportunities can help in making strategic investment decisions.
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