The Australian stock market started last week in positive territory, after a strong performance from the banking sector. However, Australian stocks ended Tuesday’s session lower after the release of discouraging earnings data. The upside drive returned mid-week on hopes that the European Central bank would introduce a new stimulus package for Greece. Another round of earnings disappointments ultimately led to a close below even Thursday.
The downward momentum continued Friday as concerns over Greece’s 323 Billion Euro (A$470 Billion) debt problem heightened. An extension of four months was granted on bail-out conditions by the EUIIMF, delaying a potential Greek exit from the Euro. A weaker oil price also prevailed and a 1.6% drop in the Australian energy sector dragged the market lower.
Despite the seemingly negative sentiment amongst commentators and the fact Australian equities only rose two of five trading sessions this week, it was enough to end higher overall At 5,881.50.
The US stock market began the first trading session of the week in negative territory, but fought back to end moderately higher on account of the news from Greece. The Fed minutes disappointed investors Wednesday and the Dow ended lower, the S&P500 closed just below even and the Nasdaq gained a modest 0.1%. The tech heavy Nasdaq managed to rise Thursday as a result of a surge from Apple. The Dow and S&P500 didn’t fare as well, hit by falling energy shares, losing 0.2% and 0.1%, respectively. The market was buoyed Friday by the extension offered to Greece and the Major Indexes notched a win. Friday’s trading was a game changer for the major indices, helping them to manage a third consecutive week of gains.
That’s the Market in review.