PERTH: The Australian sharemarket has gained for a third straight day, posting a modest rally after a new bailout deal passed through Greece’s parliament, as the banks on the local index lifted the market.
Greece’s parliament this morning passed an austerity package needed to secure a fresh bailout from its eurozone and IMF creditors, agreeing to steep spending cuts and tax increases.
The passage of the controversial deal was welcomed by local investors, with the local banks leading the charge on the Australian market today.
At 4.15pm (AEST), the benchmark S&P/ASX200 had climbed 33.4 points, or 0.59 per cent, to 5,669.6, while the broader All Ordinaries index advanced 30.8 points, or 0.55 per cent, to 5,649.8.
Macquarie Private Wealth Senior private client adviser James Rosenberg said investors would be happy with Greece’s deal, but China’s sharemarket volatility was still a bigger issue — especially for the local market.
The Shanghai Composite index dove 3 per cent in early trade today, before eking out a small shift into positive territory at the lunch break. The index is still down more than a quarter from its seven-plus year high.
Mr Rosenberg said the Chinese market would be bouncing around harder if were not for the fact that so many of the stocks were still in a trading halt.
