Markets seem to be looking past Greece
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.
Frequently Asked Questions about this Article…
While the situation in Greece is significant in economic history, international markets seem to believe it won't have much relevance for them. Recent events, like the Fed meeting, have had more impact on markets than the Greek situation.
The Euro finishing higher against the US dollar suggests that markets are looking past the Greek crisis, focusing instead on other economic factors that have a more immediate impact.
The Australian share market appears to be relatively unconcerned about the Greek crisis, having managed a positive week and showing resilience as it heads into crisis meetings.
Iron ore and copper prices finished last week negatively due to market concerns about potential reduced demand growth and inventory rebuilds, which could impact the materials sector.
The ASX 200 index has been trending higher since bouncing off the 61.8% Fibonacci retracement of its October to March rally. However, it faces resistance around its 200-day moving average at 5596.
The ASX 200 index is facing resistance around its 200-day moving average at 5596. The next hurdle could be the 61.8% retracement of the downtrend that began in late May, around 5670.
For further commentary from CMC Markets, you can contact them at 02 8221 2137.
Investors might consider focusing on broader market trends and events, such as the Fed meeting, which have shown to have more immediate impacts than the Greek crisis.
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