Greece tosses toys from the pram – again
By Michael McCarthy (chief market strategist, CMC Markets)
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.
ends