Afternoon Report Monday 6 July 2015
• With the Australian market one of the first “cabs off the rank” after the Greek referendum, our market fell from the opening bell. At our worst the ASX 200 traded 102 points lower at 5436, prior to rallying off its lows and ended only down 63 points (1.14%) to 5,475.• After the initial pick up off its lows, the market range traded between 5400 and 5420 until just before market closed at 4.00pm, when the Greek Finance Minister announced his retirement from the ministry. He was quoted as saying "Soon after the announcement of the referendum results, I was made aware of a certain preference by some Euro group participants… For this reason I am leaving the Ministry of Finance today." This led investors to believe that the Euro Group are now willing to negotiate with Greece and the current dilemma. • Iron Ore was also a major focus today, as the commodity finished limit down in Asia, meaning it has reached the maximum level of decline allowed in the futures market in one day. Fortescue Metals (FMG) followed suit and finished on its lows for the day, down 10.5c (5.8%) to $1.715; its lowest level since 2008! There could be further weakness tomorrow given this news. We remain traders of this sector, not investors and FMG is currently on our radar to trade. Watch out for trade alerts this week.
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