The Newswire

Your daily serving of financial goodness

ASX 200 Buoyed by Greece Proposal

ASX 200 Buoyed by Greece Proposal
Jun 23, 2015 By Simon Herrmann

The ASX 200 follows the strong overnight performance of international markets as Greece’s new proposal sparked hopes that a deal can be reached before June 30.

ASX 200 is up 1.3 per cent at 71 points around 11:40 am (AEST) and the broader All Ordinaries Index has gained 0.96% so far today. All sectors are currently up with the exception of Staples. The banks are leading the rally with Commonwealth Bank (ASX:CBA) up 2%, Westpac (ASX:WBC) gaining  1.8%. ANZ and Nab have climbed 1.8% and 1.4% respectively.

Eurozone Finance Ministers have welcomed the plan and called it a ‘good base to negotiate’. Greece’s leaders and its creditors met on Monday evening in Brussels in another emergency meeting to discuss the proposal. Whilst discussions may conclude with a last-minute resolution French President Francois Hollande has warned that ‘not everything has been resolved’.  Meanwhile anti-austerity protesters have gathered once again in front of the Greek parliament in Athens.

Greek Prime Minister Alexis Tsipras said "we want an overall and viable agreement which will be accompanied by a strong and front-loaded growth package and at the same time will make economy sustainable."

The international markets have given a clear answer to the question if a deal can be reached. European markets have gained strongly overnight with the German Dax jumping 3.8% and Greece’s ASE Index rising as much as 9%. However, Greece’s benachmark index is still down 40% so far this year.

Whilst a deal has not been signed off yet, it appears very likely now that the negotiations, which lasted more than five months, will each a ‘happy ending’. If the deal can be reached the European Commission, the IMF and the European Central Bank (ECB) will unlock €7.2bn of bailout funds and Greece will be able to pay its bills. The strategy of the Syriza party may be controversial and arguable, however the latest proposal shows that even the left-wing party wants to avoid a default under all circumstances. Greece is saying ‘the ball is now in your court’ and as we know that German Chancellor Angela Merkel wants to keep Greece in the Eurozone, the lethargic negotiations should finally come to an end.

Share this article

Simon Herrmann Author: Simon Herrmann Jun 23, 2015

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

Northern Cobalt banks on lasting cobalt boom

Northern Cobalt Limited (ASX:N27) is the latest cobalt exploration company to list on the ASX. Seeking to raise up to $6 million, should investors consider this junior explorer?

Author: Simon Herrmann Aug 07, 2017

Errors

Sign Up for Free Trial
Subscribe
Recent Tweets
Recent News