10.04 AEDT, Tuesday 27 November 2012
Markets quiet as traders await major announcements
By Ric Spooner (Chief Market Analyst, CMC Markets)
The Australian market looks to be in for another quiet day’s trading with relatively flat prices.
There were really no moves of any significance in major markets last night. While US stock markets and some major
commodities were a little weaker, these moves were really just minor oscillations in quiet markets that provide little
in the way of a macro lead for local investors.
Markets have a couple of major news events before them in the shape of announcements on Greek bailout funding and
negotiations on the US Fiscal cliff next month. The general expectation is that reasonable compromises will be
negotiated on both these issues and markets are priced for this outcome. However, current valuations reflect the reality
that even with these issues safely behind us, at least for the short term, developed economies face the prospect of a
long hard slog of moderate growth weighed down by the government and household debt repayment. This is likely to limit
the extent of positive market reaction to any announcement of a negotiated solution for Greece’s liquidity funding in
the short term.
ends