While the question of whether Greece stays in the Euro looms as a significant event in economic history, potentially impacting the lives of many people, it seems the broader international markets have concluded that it’s a question that’s unlikely to have much relevance for them. In the event, last week’s Fed meeting appears to have had more impact on markets than the situation in Greece. The fact that the Euro finished the week higher against the $US stands as testimony to this line of thinking. The Australian share market, being far more removed from any potential Greek fall out, also managed a positive week and looks set to head into tonight’s crisis meetings in a relatively without much concern.
Iron ore and copper prices finished last week on a negative note as markets contemplated the potential for reduced demand growth and inventory rebuilds. This may see the materials sector drag on today’s market.
The ASX 200 index has continued to trend higher since bouncing neatly off the 61.8% Fibonacci retracement of its October to March rally at 5453. Chartist’s attention is now focussed on resistance hurdles for this rally. At the moment index is yet to move convincingly clear of the zone of resistance around its 200 day moving average at 5596. Beyond that the next hurdle may be the 61.8% retracement of downtrend that began in late May. This cuts in around 5670.For further comment from CMC Markets please call 02 8221 2137.