US markets finished last week on a high, with Banking stocks driving gains as markets were optimistic on the Greek situation. Sectors which posted the biggest losses in 2011 have rallied the strongest in 2012, including Resources, Banking and Industrial stocks. The S&P500 index is now only 3 points below last year’s high. European stocks also gained as markets speculated Euro Finance Ministers will grant Greece the next bailout payment. Over the weekend, we saw Greek politicians identify the further EU325M in budget cuts needed to receive the next bailout payment. In China, the Central Bank has cut the reserve requirements for banks, in an attempt to spur further lending and economic growth, amid a slowdown in housing and the Euro crisis weighing on exports.
The Aussie market is set for a positive start, the SPI futures are up only 6 points, though positive news over the weekend from Greece surrounding the further spending cuts required and news from China surrounding banking reserve requirement cuts, will likely buoy the local market. In company reporting today, Amcor releases full year results, and Bendigo Bank, BlueScope Steel, Seven Group and NIB Holdings all release first half results. The Aussie dollar received a boost following the move from the Chinese, the Aussie lifting to $1.078 USD, while Crude Oil hit nine-month highs over $103 per barrel.
