- Regional sharemarkets were mixed overnight as speculation grew that Greece was inching towards striking a deal with the Troika which would alleviate risk of a more damaging bank run starting in Europe's most fragile economy. Apparent concerns among policy makers, which were detailed in the latest round of US Fed minutes, about the damage of raising rates too early in the US saw an early decline fade coming into close and bond markets rally. Meanwhile, economic data was mostly below expectations, particularly in the US, but corporate news in Australia prompted the market to continue its recent strong run, although valuations have risen so much, it is hard to identify one quality business that has an attractive valuation. Elsewhere, it was a bit quiet on other markets and with around one hour left in the current US session, the MSCI World Index is higher ( 0.2%) with advances in Europe ( 0.9%) and Asia ( 0.4%) offset by a modest decline in the US (-0.1%).
- In other financial markets, 10-year government bond yields rose in line with better data out of Europe, but only by a few basis points (US Treasuries up to 2.05%, UK gilts higher at 1.68% and Japanese bonds closed at 0.42%), high beta currencies were mixed (AUD 0.3% to 77.62 and the Euro -0.1% to 113.90) and commodities were universally higher:
- oil -2.8% to USD52.06 per barrel.
- iron ore -0.9% to USD63.50 per metric tonne in US futures markets.
- gold -0.6% to USD1,201 per troy ounce.
- base metals were mostly lower.
- Dr copper 1.1% at USC261 per pound.
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