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Australia: Stocks down 0.72% at the open

Monday, July 13, 2015 - 08:24
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[SYDNEY] Australian stocks dropped 0.72 per cent at the open Monday with no resolution to the drawn-out Greek debt crisis, although the market was taking heart from reduced volatility in China, analysts said.

The benchmark S&P/ASX200 index was down 39.0 points at 5,453.0 soon after the start.

"Greece is becoming a non-event for Asia and the fact the PBoC (People's Bank of China) and central government have 'regained' control of the Chinese markets for now means value can be found," said IG Markets' Evan Lucus.

However, Westpac Institutional Bank said in a note that Greece, which has been given three days to enact economic reforms or face being suspended from the euro, would continue to cast a shadow this week.

"We view this as a last ditch 'take it or leave it' deal that is likely to bring some finality to Grexit risk, at the cost of increased volatility and risk aversion in coming days," it said in a note.

In early trade the Australian dollar was at 74.38 US cents from 74.69 US cents late Friday, while it was buying 66.77 euro cents, from 67.35 euro cents.

AFP

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